A Stock Has an Expected Return of 15

Multiple Choice

A stock has an expected return of 15.10 percent and a beta of 1.30.What is the risk-free rate if the market rate is 13.1 percent?

A) 6.43 percent
B) 6.92 percent
C) 7.01 percent
D) 7.30 percent
E) 7.90 percent