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28 May 2019
Stock Y has a beta of 1.5 and an expected return of 15.7 percent. Stock Z has a beta of 0.7 and an expected return of 9 percent. What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other?
Stock Y has a beta of 1.5 and an expected return of 15.7 percent. Stock Z has a beta of 0.7 and an expected return of 9 percent. What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other?
Trinidad TremblayLv2
30 May 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
