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Q13) The market risk premium for next period is 9.05% and the risk-free rate is 1.54% . Stock Z has a beta of 0.78 and

Q13) The market risk premium for next period is 9.05% and the risk-free rate is 1.54% . Stock Z has a beta of 0.78 and an expected return of 11.57%. 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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