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Stock Y has a beta of 0.7 and an expected return of 8.29 percent. Stock Z...

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Finance

Stock Y has a beta of 0.7 and an expected return of 8.29percent. Stock Z has a beta of 1.8 and an expected return of 12.03percent. What would the risk-free rate (in percent) have to be forthe two stocks to be correctly priced relative to each other?Answer to two decimals.

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Stock Y has a beta of 0.7 and an expected return of 8.29percent. Stock Z has a beta of 1.8 and an expected return of 12.03percent. What would the risk-free rate (in percent) have to be forthe two stocks to be correctly priced relative to each other?Answer to two decimals.

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