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Stock Y has a beta of 1.2 and an expected return of 14.5 percent. Stock Z has a beta of .7 and an expected return
Stock Y has a beta of 1.2 and an expected return of 14.5 percent. Stock Z has 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?Please show all calculations and formulas used. Thanks! |
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