Problemstock y has a beta of 115 and an expected return of, Ask an Expert

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Problem:

Stock Y has a beta of 1.15 and an expected return of 14 percent. Stock Z has a beta of .70 and an expected return of 9 percent.

Task:

Question 1: What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other? Please explain in detail.

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Category:- Basic Finance
Reference No.:- M91146648

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