Risk-free rate-two stocks to be correctly priced

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Stock Y has a beta of 1.4 and an expected return of 17.0 percent. Stock Z has a beta of 0.7 and an expected return of 10.1 percent. What would the risk-free rate have to be for the two stocks to be correctly priced? (Round your answer to 2 decimal places. (e.g., 32.16))

Reference no: EM131084231

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