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


Stock Y has a beta of 1.30 and an expected return of 14.6 percent. Stock Z has a beta of .75 and an expected return of 11.3 percent. What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other? (Do not round intermediate calculations and 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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