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28 Sep 2019
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
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
Bunny GreenfelderLv2
28 Sep 2019