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Stock Y has a beta of 1.40 and an expected return of 16.4 percent. Stock Z has a beta of .85 and an expected return

Stock Y has a beta of 1.40 and an expected return of 16.4 percent. Stock Z has a beta of .85 and an expected return of 12.0 percent.

What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other?

What is the risk free rate?

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