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Problem 1 3 - 1 8 Reward - to - Risk Ratios [ LO 4 ] Stock Y has a beta of 1 . 2

Problem 13-18 Reward-to-Risk Ratios [LO4]
Stock Y has a beta of 1.2 and an expected return of 14.5 percent. Stock Z has a beta of .7 and an expected return of 9.3 percent. If the risk-free rate is 5.6 percent and the market risk premium is 6.6 percent, the reward-to-risk
\table[[ratios for Stocks Y and Z are,and,and Stock Z is],[the SML reward-to-risk is,,]]
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