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Stock Y has a beta of 1 and an expected return of 14.05 percent. Stock Z has a beta of 0.4 and an expected return
Stock Y has a beta of 1 and an expected return of 14.05 percent. Stock Z has a beta of 0.4 and an expected return of 8 percent. What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)
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