Stock y has a beta of 87 and an expected return of 980


Stock Y has a beta of .87 and an expected return of 9.80 percent. Stock Z has a beta of .70 and an expected return of 9 percent. What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Risk-free rate _______%

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Financial Management: Stock y has a beta of 87 and an expected return of 980
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