Multiple Choice
Amalgamated Aluminum stock has a beta of 1.2.Today's market risk premium is 13%.Amalgamated Aluminum stockholders require a rate of return of 22%.What is the present risk-free rate?
A) 6.40%
B) 22.00%
C) 4.60%
D) 15.60%
Correct Answer:

Verified
Correct Answer:
Verified
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