The risk-free rate have to be for the two stocks

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Reference no: EM131997543

Stock Y has a beta of 1.50 and an expected return of 16.4 percent. Stock Z has a beta of .95 and an expected return of 12.6 percent.

Stock	beta	Expected return
Y	1.50	16.4%
Z	.95	12.6%
Total	Risk-Free Rate

What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other?

(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Risk-free rate

Reference no: EM131997543

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