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

Assignment Help Financial Management

Reference no: EM131616685

Stock Y has a beta of 1.1 and an expected return of 14.15 percent. Stock Z has a beta of 0.4 and an expected return of 6 percent. What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Risk-free rate %

Reference no: EM131616685

Questions Cloud

Discuss issues related to diversity and policing : Issues related to diversity and policing, The effect community policing has on diversity relations

Develop a website in adobe dreamweaver : Develop a Website in Adobe Dreamweaver. In Dreamweaver, design and create a 3-page website for your identified organization.

What will be its optimal cash return point : What will be its optimal cash return point?

Trade and comparative advantages : Describe in a one to two paragraph short essay the terms of trade and comparative advantages discussed in 1 Kings 5.

What would the risk-free rate have to be for two stocks : What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other?

Demanding one unit of the goods : Consumers' willingness to pay v is uniformly distributed on interval [0, 1]. A monopolist has zero production cost.

Define the organizational management theoretical perspective : Try to include info that is challenging and respectful and that will stimulate debate

Determine the rate of heat transfer from the oil : Consider the flow of oil at 10°C in a 40-cm-diameter pipeline at an average velocity of 0.5 m/s. A 1500-m-long section of the pipeline passes through icy water.

Changing the marketing landscape in the aviation industry : Describe the major trends and forces that are changing the marketing landscape in the aviation industry in this age of relationships.

User Account

All Pages