Stock y has a beta of 135 and an expected return of 153


Stock Y has a beta of 1.35 and an expected return of 15.3 percent. Stock Z has a beta of 0.8 and an expected return of 11.2 percent. Required: What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other?

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Financial Management: Stock y has a beta of 135 and an expected return of 153
Reference No:- TGS01459800

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