Question
Stock Y has a beta of 1.50 and an expected return of 16%. Stock Z has a beta of 0.80 and an expected return of
Stock Y has a beta of 1.50 and an expected return of 16%. Stock Z has a beta of 0.80 and an expected return of 11%. What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other?
| a. | 8.67% | |
| b. | 5.29% | |
| c. | 6.78% | |
| d. | 7.56% |
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Green And Sustainable Finance
Authors: Simon Thompson
2nd Edition
1398609242, 978-1398609242
