Stock y has a beta of 14 and an expected return of 164


Stock Y has a beta of 1.4 and an expected return of 16.4 percent. Stock Z has a beta of 0.85 and an expected return of 12 percent. Required: What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Stock y has a beta of 14 and an expected return of 164
Reference No:- TGS01463694

Expected delivery within 24 Hours