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Q13) The market risk premium for next period is 8.90% and the risk-free rate is 2.13%. Stock Z has a beta of 0.747 and an

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Q13) The market risk premium for next period is 8.90% and the risk-free rate is 2.13%. Stock Z has a beta of 0.747 and an expected return of 12.79%. 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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