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S13-18 Reward-to-Risk Ratios [L04] Stock Y has a beta of 1.2 and an expected return of 11.1 percent. Stock Z has a beta of.80 and
S13-18 Reward-to-Risk Ratios [L04] Stock Y has a beta of 1.2 and an expected return of 11.1 percent. Stock Z has a beta of.80 and an expected return of 7.85 percent. If the risk-free rate is 2.4 percent and the market risk premium is 7.2 percent, the reward-to-risk ratios for stocks Y and Z are and percent, respectively. Since the SML reward-to-risk is percent, (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) and Stock Z is Stock Y'is S13-18 Reward-to-Risk Ratios [L04] Stock Y has a beta of 1.2 and an expected return of 11.1 percent. Stock Z has a beta of.80 and an expected return of 7.85 percent. If the risk-free rate is 2.4 percent and the market risk premium is 7.2 percent, the reward-to-risk ratios for stocks Y and Z are and percent, respectively. Since the SML reward-to-risk is percent, (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) and Stock Z is Stock Y'is
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