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Q13) The market risk premium for next period is 5.43% and the risk-free rate is 3.03%. Stock Z has a beta of 1.153 and an

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Q13) The market risk premium for next period is 5.43% and the risk-free rate is 3.03%. Stock Z has a beta of 1.153 and an expected return of 8.64%. Compute the following: a) Market's reward-to-risk ratio : ( 0.75 points ) b) Stock Zs reward-to-risk ratio : ( 0.75 points )

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