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Q13) The market risk premium for next period is 9.50% and the risk-free rate is 2.34% . Stock Z has a beta of 1.232 and
Q13) The market risk premium for next period is 9.50% and the risk-free rate is 2.34% . Stock Z has a beta of 1.232 and an expected return of 13.21%. Compute the following: |
a) Market's reward-to-risk ratio : (0.75 points) |
b) Stock Z's reward-to-risk ratio : (0.75 points) |
Answer both questions in 4 decimal form
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