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


Reward-to-Risk Ratios

Stock Y has a beta of 1.2 and an expected return of 14.5 percent. Stock Z has a beta of .7 and an expected return of 9.3 percent.

What would the risk-free rate have to be for the two stocks to be correctly priced? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Risk-free rate %

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