Question: Problem 12-13 Relative Valuation (LO3, CFA2) Stock Y has a beta of 1.30 and an expected retum of 13.35 percent. Stock Z has a beta

Problem 12-13 Relative Valuation (LO3, CFA2) Stock Y has a beta of 1.30 and an expected retum of 13.35 percent. Stock Z has a beta of 50 and an expected return of 8 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.)

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