What would the risk-free rate have to be for the two stocks


Stock Y has a beta of 1.45 and an expected return of 15.1 percent. Stock Z has a beta of .90 and an expected return of 11.8 percent. What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other? need step by step solution for equation please.

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Financial Management: What would the risk-free rate have to be for the two stocks
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