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Q15) The market risk premium for next period is 8.50% and the risk-free rate is 3.80%. Stock Z has a beta of 0.636 and an

Q15) The market risk premium for next period is 8.50% and the risk-free rate is 3.80%. Stock Z has a beta of 0.636 and an expected return of 13.40%. What is the:

a) Market's reward-to-risk ratio?

b) Stock Z's reward-to-risk ratio?

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