Question: PLEASE SHOW WORK AND FORMULAS Stock Y has a beta of 1.4 and an expected return of 15.2 percent. Stock Z has a beta of

PLEASE SHOW WORK AND FORMULAS Stock Y has a beta of

PLEASE SHOW WORK AND FORMULAS

Stock Y has a beta of 1.4 and an expected return of 15.2 percent. Stock Z has a beta of 7 and an expected return of 9.1 percent. What would the risk-free rate have to be for the two stocks to be correctly priced? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is complete and correct. Risk-free rate 3.00 %

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