Question
Stock Y has a beta of 1.4 and an expected return of 17 percent. Stock Z has a beta of .7 and an expected return
| Stock Y has a beta of 1.4 and an expected return of 17 percent. Stock Z has a beta of .7 and an expected return of 10.1 percent. |
| What would the risk-free rate have to be for the two stocks to be correctly priced? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Risk-free rate | % |
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Multinational Financial Management
Authors: R M Srivastava
1st Edition
8174466703, 9788174466709
