Stock Y has a beta of 1.35 and an expected return of 13.0 percent. Stock Z has a beta of .80 and an expected return of 10.5 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.)