Given the following information, determine the risk-free rate. - 4020

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

Cost of equity=12%

Beta=1.50

Market risk premium=3%

 

A. 

6.5%

B. 

7.0%

C. 

7.5%

D. 

8.0%

 
Solution Description

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

Cost of equity

=

12%