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Problem 1 3 - 1 8 Reward - to - Risk Ratios [ LO 4 ] Stock Y has a beta of 1 . 4
Problem RewardtoRisk Ratios LO
Stock has a beta of and an expected return of percent. Stock has a beta of and an expected
return of percent. If the riskfree rate is percent and the market risk premium is percent, the rewardtorisk
tableratios for Stocks and are,,and,,percent, respectively. Sincethe SML rewardtorisk ispercent, Stock isand Stock is
Do not round intermedlate calculations and enter your answers as a percent rounded to decimal places, eg
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