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28 Sep 2019
Stock Y has a beta of 1.0 and an expected return of 13.0 percent. Stock Z has a beta of 0.5 and an expected return of 7.8 percent.
What would the risk-free rate have to be for the two stocks to be correctly priced? (Round your answer to 2 decimal places. (e.g., 32.16))
Risk-free rate =_____________________ %
Stock Y has a beta of 1.0 and an expected return of 13.0 percent. Stock Z has a beta of 0.5 and an expected return of 7.8 percent.
| What would the risk-free rate have to be for the two stocks to be correctly priced? (Round your answer to 2 decimal places. (e.g., 32.16)) |
| Risk-free rate =_____________________ | % |
Tod ThielLv2
28 Sep 2019
Related questions
Stock Y has a beta of 1.50 and an expected return of 16.4 percent. Stock Z has a beta of .95 and an expected return of 12.6 percent.
| Stock | beta | Expected return |
| Y | 1.50 | 16.4% |
| Z | .95 | 12.6% |
| Total | Risk-Free Rate |
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.) Risk-free rate
