Stock a has an expected return of 101 percent and a beta of, Ask an Expert

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Stock A has an expected return of 10.1 percent and a beta of 1. Stock B has an expected return of 6.2 percent and a beta of 0.3. Both stocks have the same reward-to-risk ratio. What is the risk-free rate? That is, what would the risk-free rate have to be for the two stocks to be correctly priced?

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Financial Management, Finance

Category:- Financial Management
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