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Q5) The market risk premium for next period is 6.40% and the risk-free rate is 2.80%. Stock Z has a beta of 1.29 and an

Q5) The market risk premium for next period is 6.40% and the risk-free rate is 2.80%. Stock Z has a beta of 1.29 and an expected return of 8.50%. What is the: a) Market's reward-to-risk ratio?:

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

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