Stock y has a beta of 10 and an expected return of 124


Stock Y has a beta of 1.0 and an expected return of 12.4 percent. Stock Z has a beta of 0.6 and an expected return of 8.2 percent. What would the risk-free rate have to be for the two stocks to be correctly priced? (Do not round intermediate calculations and round your answer to 2 decimal places. (e.g., 32.16))

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Financial Management: Stock y has a beta of 10 and an expected return of 124
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