Question: Suppose you observe the following situation: Security Beta Standard Deviation Expected Return Cooley, Inc 2 . 0 4 8 % 2 6 . 0 0

Suppose you observe the following situation: Security Beta Standard Deviation Expected Return Cooley, Inc 2.048%26.00% Moyer Co.0.820%18.00% What does the risk-free rate have to be for Cooley, Inc. and the Moyer Co. to be correctly priced relative to each other? a.1.33% b.2.67% c.6.33% d.12.67% e. There is not enough information provided to determine what the risk-free must be for Cooley, Inc. and Moyer Co. to be correctly priced relative to each another.

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