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Problem 1 3 - 1 8 Reward - to - Risk Ratios [ LO 4 ] Stock Y has a beta of 1 . 4

Problem 13-18 Reward-to-Risk Ratios [LO4]
Stock Y has a beta of 1.4 and an expected return of 17 percent. Stock Z has a beta of .7 and an expected
return of 10.1 percent. If the risk-free rate is 6 percent and the market risk premium is 7.2 percent, the reward-to-risk
\table[[ratios for Stocks Y and Z are,,and,,percent, respectively. Since],[the SML reward-to-risk is,percent, Stock Y is,,and Stock Z is,]]
(Do not round intermedlate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.,32.16.)
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