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Stock Y has a beta of 0.8 and an expected return of 9.5 percent. Stock Z has a beta of 2.1 and an expected return
Stock Y has a beta of 0.8 and an expected return of 9.5 percent. Stock Z has a beta of 2.1 and an expected return of 13.61 percent. What would the risk-free rate (in percent) have to be for the two stocks to be correctly priced relative to each other? Answer to two decimals.
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