Stock Y has a beta of 1.3 and an expected return of 15.3 percent. Stock Z has a beta of 0.70 and an expected return of 9.3 percent.
15.3-Rf/1.3=9.3-Rf/0.70 this would equal to .70(15.3-Rf)=1.3(9.3-Rf). When you solve for it it the answer is 2.3%
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