Two stocks to be correctly priced relative to each other

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Stock Y has a beta of 1.30 and an expected return of 13.0 percent. Stock Z has a beta of 0.75 and an expected return of 10.5 percent. Required: What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).) Risk-free rate 8 %

Reference no: EM131915237

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