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Stock Y has a beta of 1.0 and an expected return of 13 percent. Stock Z has a beta of .5 and an expected return
Stock Y has a beta of 1.0 and an expected return of 13 percent. Stock Z has a beta of .5 and an expected return of 7.8 percent. |
What would the risk-free rate have to be for the two stocks to be correctly priced? |
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