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Problem 13-18 Reward-to-Risk Ratios (L04] Stock Y has a beta of 1.5 and an expected return of 15.7 percent. Stock Z has a beta of.6
Problem 13-18 Reward-to-Risk Ratios (L04] 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 ratios for Stocks Y and Z are percent, respectively. Since the SML reward-to-risk is percent, Stock Y is and Stock Z is (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) and
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