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Stock Y has a beta of 1 . 2 and an expected return of 1 4 . 5 percent. Stock Z has a beta of

StockYhas a beta of 1.2 and an expected
return of 14.5 percent. StockZhas a beta of .7
and an expected return of 9.3 percent.What would the risk-free rate have to be for the two stocks to
be correctly priced?(Do not round intermediate
calculations and enter your answer as a percent rounded to 2
decimal places, e.g.,32.16.)

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