Stock y has a beta of 13 and an expected return of 81


Stock Y has a beta of 1.3 and an expected return of 8.1 percent. Stock Z has a beta of 0.7 and an expected return of 11 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.)

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Financial Management: Stock y has a beta of 13 and an expected return of 81
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