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


Stock Y has a beta of 1.33 and an expected return of 13.40 percent. Stock Z has a beta of .40 and an expected return of 7 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. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

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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