Problem 13-18 Reward-to-Risk Ratios [LO4]

Problem 13-18 Reward-to-Risk Ratios [L04] Stock Y has a beta of 1.2 and an expected return of 148 percent Stock Z has a beta of .7 and an expected return of 9.3 percent. If the risk-free rate is 56 percent and the market risk premium is 68 percent, the reward-to-risk ratios for Stocks Y and Z are the SML reward-to-risk is and percent, Stock Y is percent, respectively. Since 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.)