Given the following information, determine the risk-free rate. - 2314

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Request Description

Given the following information, determine the risk-free rate.

Cost of equity      =       12%

Beta  =       1.50

Market risk premium   =       3%

A.   7.0%

B.   6.5%

C.   8.0%

D.   7.5%

Solution Description

Given the following information, determine the risk-free rate.