A Stock Has an Expected Return of 14

Multiple Choice

A stock has an expected return of 14.59 percent and a beta of 1.35.What is the risk-free rate if the market rate is 12.7 percent?

A) 6.48 percent
B) 6.92 percent
C) 7.01 percent
D) 7.30 percent
E) 7.90 percent