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

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Reference no: EM131997485

Stock Y has a beta of 1.40 and an expected return of 14.2 percent. Stock Z has a beta of .85 and an expected return of 10.7 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.)

Risk-free rate? %

Reference no: EM131997485

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