Stock y has a beta of 101 and an expected return of 838, Ask an Expert

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Stock Y has a beta of 1.01 and an expected return of 8.38 percent. Stock Z has a beta of .70 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, Finance

Category:- Financial Management
Reference No.:- M91590283

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