What would the risk-free rate have to be

Reference no: EM13270565

Stock Y has a beta of 1.25 and an expected return of 12.6 percent. Stock Z has a beta of .8 and an expected return of 9.9 percent. Required: What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other?

Reference no: EM13270565

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