#12 ( capital asset pricing model)

#13 ( Reward to risk ratio)

12. CAPITAL ASSET PRICING MODEL - CALCULATE BETA E(RA) = R1 + BA(E(RM) - R.) You own shares in a firm with an expected return of 14.6%. U.S. Treasury Bills are returning 3.5%. The market risk premium is 7.5%. What is the Beta of this stock? Desmer & 13. REWARD-TO-RISK RATIO - Measures the risk premium, per unit, of systematic risk E(RA) - Rr) / BA. A stock has a Beta of 1.48 and an expected return of 11.6%. The risk-free rate is 4.3%. What is the Reward-to-Risk ratio