Stock Y has a beta of 1.0 and an expected return of 12.4 percent. Stock Z has a beta of 6 and an expected return of 8.2 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.)
Risk-free rate
%