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Suppose you have following information: Security Beta Expected return Fires Inc. 1.47 16.2% Day Co. 0.84 12.7% What would the risk-free rate have to be

Suppose you have following information:

Security Beta Expected return

Fires Inc. 1.47 16.2%

Day Co. 0.84 12.7%

What would the risk-free rate have to be for the securities to be correctly priced?

Question 20 options:

12.00%

13.12%

9.78%

8.00%

13.59%

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