Question: please help quickly i have an hour left in my exam C. Stock Y has a beta of 1.6 and an expected return of 16.6

please help quickly i have an hour left in my exam

C. Stock Y has a beta of 1.6 and an expected return of 16.6 percent. Stock Z has a beta of.8 and an expected return of 9.4 percent. The risk-free rate is 5.1 percent and the market risk premium is 6.6 percent. Show your work to get credit (i) Explain if stocks Y and Z are undervalued or overvalued using the SML approach. (ii) What would the risk-free rate have to be for the two stocks to be correctly priced

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