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

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Question 1: Stock Y has a beta of 1.45 and an expected return of 17 percent. Stock Z has a beta of .85 and an expected return of 12 percent. If the market risk premium is 7.5 percent, what would the risk-free rate have to be for the two stocks to be correctly priced?

Reference no: EM132578347

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