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Stock Y has a beta of 1 . 2 and an expected return of 1 1 . 5 % . Stock Z has a beta

Stock Y has a beta of 1.2 and an expected return of 11.5%. Stock Z has a beta of .80 and an expected return of 8.5%. The risk-free rate is 3.2%, and the market risk premium is 6.8%.
a. What is the reward-to-risk ratio of stock Y?
b. What is the reward-to-risk ratio of stock Z?
c. What is the SML reward-to-risk ratio?
d. According to the CAPM, stock Y is overvalued or undervalued?
e. According to the CAPM, stock Z is overvalued or undervalued?

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