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The risk-free rate and market risk premium
Course:- Financial Management
Reference No.:- EM13763191





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Stock Y has a beta of 1.3 and an expected return of 15 percent. Stock Z has a beta of 0.75 and an expected return of 11.4 percent. Required: If the risk-free rate is 5.25 percent and the market risk premium is 7.75 percent, are these stocks correctly priced? Stock Y Stock Z




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