Stock Y has a beta of 1.45 and an expected return of 15.1 percent. Stock Z has a beta of 0.9 and an expected return of 11.8 percent.

Required:

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 percentage rounded to 2 decimal places (e.g., 32.16).)

Risk-free rate

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