Stock y has a beta of 16 and an expected return of 166, Ask an Expert

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Stock Y has a beta of 1.6 and an expected return of 16.6 percent. Stock Z has a beta of .8 and an expected return of 9.4 percent.

What would the risk-free rate have to be for the two stocks to be correctly priced? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Risk-free rate %

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92756568

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