Multiple Choice
Stock X has a beta of 0.87 and an expected return of 10.4%. Stock Y has a beta of 1.1 and an expected return of 12.2%. What is the risk-free rate of return assuming that both Stock X and Stock Y are correctly priced?
A) 2.50%
B) 4.38%
C) 3.59%
D) 3.94%
E) 3.09%
Correct Answer:
Verified
Correct Answer:
Verified
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