Stock y has a beta of 14 and an expected return of 153


Stock Y has a beta of 1.4 and an expected return of 15.3 percent. Stock Z has a beta of .6 and an expected return of 8.3 percent.

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

  Risk-free rate

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Financial Management: Stock y has a beta of 14 and an expected return of 153
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