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For the spaces numbered (1), (2), and (3), please round your answer to two decimal places. For the spaces numbered (4) and (5) choose one

For the spaces numbered (1), (2), and (3), please round your answer to two decimal places. For the spaces numbered (4) and (5) choose one of the two possible answers underpriced or overpriced. Stock Y has a beta of 1.5 and an expected return of 15.7 percent. Stock Z has a beta of .6 and an expected return of 8.2 percent. If the risk-free rate is 5.3 percent and the market risk premium is 6.3 percent, the reward-to-risk ratio for stock Y is (1) - percent and the reward-to-risk ratio for stock Z is (2) - percent. Since the SML reward-to-risk is (3) - percent, Stock Y is (4) - and Stock Z is (5) - .

1, 2, 3, 4, 5

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