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Stock Y has a beta of 1.45 and an expected return of 13.50 percent. Stock Z has a beta of 0.70 and an expected return
Stock Y has a beta of 1.45 and an expected return of 13.50 percent. Stock Z has a beta of 0.70 and an expected return of 10 percent. What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
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