# A stock has an expected return of 14.5 percent, its beta is 1.95

## Question: A stock has an expected return of 14.5 percent, it…

A stock has an expected return of 14.5 percent, its beta is 1.95, and the expected return on the market is 11 percent. What must the risk-free rate be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)