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Q13) The market risk premium for next period is 5.01% and the risk-free rate is 2.17%. Stock Z has a beta of 1.003 and an

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Q13) The market risk premium for next period is 5.01% and the risk-free rate is 2.17%. Stock Z has a beta of 1.003 and an expected return of 14.13%. 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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