What would the risk-free rate have to be for the stocks

Reference no: EM131797378

Question: Stock Y has a beta of 1.50 and an expected return of 16.2 percent. Stock Z has a beta of .95 and an expected return of 12.5 percent.

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.)

Reference no: EM131797378

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