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Q13) The market risk premium for next period is 7.65% and the risk-free rate is 3.15% . Stock Z has a beta of 1.240 and
| Q13) The market risk premium for next period is 7.65% and the risk-free rate is 3.15% . Stock Z has a beta of 1.240 and an expected return of 8.08%. 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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The Handbook Of Post Crisis Financial Modelling
Authors: Emmanuel Haven, Philip Molyneux, John Wilson, Sergei Fedotov, Meryem Duygun
1st Edition
1137494484, 978-1137494481
