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#18 18. Reward-to-Risk Ratios [LO4] Stock Y has a beta of 1.2 and an expected return of 11.1 percent. Stock Z has a beta of

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18. Reward-to-Risk Ratios [LO4] Stock Y has a beta of 1.2 and an expected return of 11.1 percent. Stock Z has a beta of .80 and an expected return of 7.85 percent. If the risk-free rate is 2.4 percent and the market risk premium is 7.2 percent, are these stocks correctly priced? 19. Reward-to-Risk Ratios (L04] In the previous problem, what would the risk-free to ha for the two stocks to be correctly priced? 112 and an expected return of 10.8 INTE Ques

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