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begin{tabular}{|l|l|l|} hline Stock Y has a beta of 1.2 and an expected return of 15.3 percent. Stock Z has a beta of 0.8 and an
\begin{tabular}{|l|l|l|} \hline Stock Y has a beta of 1.2 and an expected return of 15.3 percent. Stock Z has a beta of 0.8 and an expected return \\ \hline of 10.7 percent. If the risk-free rate is 6 percent and the market risk premium is 7 percent, the reward-to-risk \\ \hline ratios for stocks Y and Z are & and & percent, Stock Y is \\ \hline percent, respectively. Since the SML reward-to-risk is & . (Do not round intermediate calculations \\ \hline & and Stock Z is & \\ \hline \end{tabular}
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