Question

The expected return on Microsoft stock is 8.40 percent and historical market return is 10.00 percent....

The expected return on Microsoft stock is 8.40 percent and historical market return is 10.00 percent. Microsoft has a Beta of 0.82. What is the risk-free rate of return?

Group of answer choices

2.22 percent

2.11 percent

1.11 percent

1.76 percent

1.63 percent

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