Question
Stock Y has a beta of 0.9 and an expected return of 11.2 percent. Stock Z has a beta of 0.5 and an expected return
Stock Y has a beta of 0.9 and an expected return of 11.2 percent. Stock Z has a beta of 0.5 and an expected return of 7.2 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 | % |
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Chains Of Finance How Investment Management Is Shaped
Authors: Diane-Laure Arjalies, Philip Grant, Iain Hardie, Donald MacKenzie, Ekaterina Svetlova
1st Edition
0198802943, 978-0198802945
