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An analyst has gathered the following forecast information for XYZ stock, as well as some market parameters: Stock beta = 0.66; Expected return on the
An analyst has gathered the following forecast information for XYZ stock, as well as some market parameters:
Stock beta = 0.66; Expected return on the market = 11.00%; Expected return on T-bills = 2.11%; Current stock price = $14.44.
What is thereward-to-risk ratio for the market?(Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations).
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