Stock y has a beta of 135 and an expected return of 13


Stock Y has a beta of 1.35 and an expected return of 13 percent. Stock Z has a beta of 0.8 and an expected return of 10.5 percent. Required: 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. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Stock y has a beta of 135 and an expected return of 13
Reference No:- TGS01246584

Expected delivery within 24 Hours