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Q13) The market risk premium for next period is 4.62% and the risk-free rate is 3.94%. Stock Z has a beta of 0.772 and an
Q13) The market risk premium for next period is 4.62% and the risk-free rate is 3.94%. Stock Z has a beta of 0.772 and an expected return of 10.95%. Compute the following: a) Market's reward-to-risk ratio : (0.75 points ) b) Stock Z's reward-to-risk ratio : ( 0.75 points )
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