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


Stock Y has a beta of 1.35 with an expected return of 14.3 percent. Stock Z has a beta of.80 and an expected return of 10.7 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: What would the risk-free rate have to be for the two stocks
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