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Q 1 9 . Reward - to - Risk Ratios. Stock Y has a beta of 1 . 2 5 and an expected return of
QRewardtoRisk Ratios. Stock Y 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, are these stocks correctly priced?
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