Stock y has a beta of 140 and an expected return of 130


Stock Y has a beta of 1.40 and an expected return of 13.0 percent. Stock Z has a beta of .85 and an expected return of 10.4 percent. 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 140 and an expected return of 130
Reference No:- TGS02151113

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