Solved: Value of the risk-free-rate, Finance Basics

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Value of the risk-free-rate

Problem:

Propose we only have the information of beta and expected return, if we know the value of the risk-free-rate, can we determine which one of the following stocks is priced higher.

Stock A : Beta 1.08, Expected Return 12.8%
Stock B : Beta 0.66, Expected Return 9.6%

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Finance Basics: Value of the risk-free-rate

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Finance Basics: Value of the risk-free-rate

Reference No:- TGS02038037

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