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01 The market risk premium for next period is 9.30% and the risk-free rate is 1.90%. Stock Z has a beta of 0.95 and an

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01 The market risk premium for next period is 9.30% and the risk-free rate is 1.90%. Stock Z has a beta of 0.95 and an expected return of 11.00%. a) What is the Market's reward-to-risk ratio: b) What is the Stock Z's reward-to-risk ratio: Q2. An analyst gathered the following information for a stock and market parameters: stock beta-1.50; expected return on the Market-10.10%; expected return on T-bills 1.50%; current stock Price-S701, expected stock price in one year-$11.58; expected dividend payment next year $1.18. Calculate the a) Required return for this stock: b) Expected return for this stock: Q3. You are invested 25.00% in growth stocks with a beta of 1.50, 34.10% in value stocks with a beta of 0.52, and 40.90% in the market portfolio, what is the beta of your portfolio

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