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You observe the following: Security ABC Inc. XYZ Inc. Beta 1.8 1.6 Expected returns 0.20 0.19 What would the risk-free rate have to be if

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You observe the following: Security ABC Inc. XYZ Inc. Beta 1.8 1.6 Expected returns 0.20 0.19 What would the risk-free rate have to be if the two securities are correctly priced? a. 0.14 b. 0.11 C. 0.13 d. 0.06 e. 0.10

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