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Stock Y has a beta of 0.9 and an expected return of 12.6 percent. Stock Z has a beta of 0.6 and an expected return
Stock Y has a beta of 0.9 and an expected return of 12.6 percent. Stock Z has a beta of 0.6 and an expected return of 8.9 percent. If the risk-free rate is 5.7 percent and the market risk premium is 6.7 percent, the reward-to-risk ratios for stocks Y and Z are and 16 percent, respectively. Since the SML reward-to-risk is percent, Stock Y is and Stock Z is (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) points eBook Print References
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