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A stock has a beta of 1.17 and an expected return of 11.21 percent. If the risk-free rate is 3.2 percent, what is the stock's

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image text in transcribed A stock has a beta of 1.17 and an expected return of 11.21 percent. If the risk-free rate is 3.2 percent, what is the stock's reward-to-risk ratio?
Font Jyles A1 Styles A B D E F 1 2 G H 3 Asset W has an expected return of 11.8 percent and a beta of 1.15. If the risk-free rate is 3.7 percent, complete the following table for portfolios of Asset W and a risk-free asset. Illustrate the relationship between portfolio expected return and portfolio beta by calculating the expected returns and betas of portfolios with various weights invested in the stock and risk-free asset. What is the slope of the line that results? 4 5 6 7 Stock E(R) Stock beta Risk-free return 11.80% 1.15 3.70% 8 9 10 11 Complete the following analysis. Do not hard code values in your calculation + 12 13 14 15 16 17 Weight of W Weight of risk-free Portfolio E(R) Portfolio beta 0% 100% 25% 75% 50% 50% 75% 25% 100% 0% 125% -25% 18 19 Sheet1 + READY Attempt(s) + 100% Mine 1 PC fa B D E 8 Risk-free return F 3.70% G H 9 10 11 Complete the following analysis. Do not hard code values in your calculations. 12 13 14 15 16 Weight of W Weight of risk-free Portfolio E(R) Portfolio beta 0% 100% 25% 75% 50% 50% 75% 25% 100% 0% 125% -25% 150% -50% 17 18 19 20 21 22 23 Slope of SML 24 25 26 4 Sheet1 S. FRE 100% Font Jyles A1 Styles A B D E F 1 2 G H 3 Asset W has an expected return of 11.8 percent and a beta of 1.15. If the risk-free rate is 3.7 percent, complete the following table for portfolios of Asset W and a risk-free asset. Illustrate the relationship between portfolio expected return and portfolio beta by calculating the expected returns and betas of portfolios with various weights invested in the stock and risk-free asset. What is the slope of the line that results? 4 5 6 7 Stock E(R) Stock beta Risk-free return 11.80% 1.15 3.70% 8 9 10 11 Complete the following analysis. Do not hard code values in your calculation + 12 13 14 15 16 17 Weight of W Weight of risk-free Portfolio E(R) Portfolio beta 0% 100% 25% 75% 50% 50% 75% 25% 100% 0% 125% -25% 18 19 Sheet1 + READY Attempt(s) + 100% Mine 1 PC fa B D E 8 Risk-free return F 3.70% G H 9 10 11 Complete the following analysis. Do not hard code values in your calculations. 12 13 14 15 16 Weight of W Weight of risk-free Portfolio E(R) Portfolio beta 0% 100% 25% 75% 50% 50% 75% 25% 100% 0% 125% -25% 150% -50% 17 18 19 20 21 22 23 Slope of SML 24 25 26 4 Sheet1 S. FRE 100%

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