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4. Reward-to-Risk Ratios. Stock Y has a beta of 0.9 and an expected return of 10.1 percent. Stock Z has a beta of 1.4 and

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4. Reward-to-Risk Ratios. Stock Y has a beta of 0.9 and an expected return of 10.1 percent. Stock Z has a beta of 1.4 and an expected return of 14.2 percent. If the risk- free rate is 4 percent and the market risk premium is 7 percent, are these stocks 7 correctly priced? 5. Reward-to-Risk Ratios. In the previous problem, what would the risk-free rate have to be for the two stocks to be correctly priced relative to each other

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