Stock Y has a beta of 1.05 and an expected return of 15.55 percent. Stock Z has a beta of .90 and an expected return of 6 percent. If the risk-free rate is 4.0 percent and the market risk premium is 8.8 percent, what are the reward-to-risk ratios of Y and Z?
Stock 'I" has a beta of 1.05 and an expected return of 15.55 percent. Stock Z has a beta of .90 and an expected return of 5 percent. It the riskfree rate is 4.0 percent and the market risk premium is 8.8 percent, what are the rewardtorisk ratios of 'I" and 2? [Do not round intermediate calculations. Round your answers to 4 decimal plaoes.) E E You are given the following intormation concerning a stock and the market: Rehms Year Maket Stock 2008 15% 2?% 2i] i] 9 'i 9 1 El 20 1 El 25 5 2ii'l 'l '12 22 2D 12 35 1 E 2'l 3 'l 5 2? 1. Calculate the average retum and standard deviation for the market and the stock. [Use excel to complete the problem. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "t." sign in your response} Maket Stock Av erage return 'i-'i: iii: Standard deviation [is t: 2. Calculate the correlation between the stoclc and the market, as well as the stock's beta. [Use excel to complete the problem. Do not round intermediate calculations. Round your Correlation answer to 2 decimal places and Beta answer to 4 decimal places.} Correlation B eta Stock '1' has a beta of 1.05 and an expected return of 15.55 percent. Stock 2 has a ioeta of .BU and an expected return of 5 percent. It the risk-free rate is 4.0 percent and the maricet risk premium is 8.5 percent, what are the reward-torisk ratios of Y and 2? [Do not round intermediate calculations. Round 1Jirour answers to 4 decimal places.) Y E Z _9 You are given the following information conceming a stoclc and the market: Retuns Yea trinket Stock 2005 1 5% 22% 2000 1 El 1 El 20 1 0 25 5 201 1 1 2 22 20 12 35 1 5 201 3 1 5 2? 1. Calculate the average return and standard deviation for the market and the stock. [Use excel to complete the problem. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "\"35" sign in your response} Mallet Stock Average return 15.1? a '15 12.00 a 0-5 Standard deviation 15.?3 a iii: 18.55 a 0-1: 2. Calculate the correlation behveen the stock and the market, as well as the stock's beta. [Use excel to complete the problem. Do not round intermediate calculations. Round your Correlation answer to 2 decimal places and Beta answer to 4 decimal places.} Correlation m a Beta m a Stock '1' has a beta of 1.05 and an expected return of 15.55 percent. Stock 2 has a ioeta of .BU and an expected return of 5 percent. It the risk-free rate is 4.0 percent and the maricet risk premium is 8.5 percent, what are the reward-torisk ratios of Y and 2? [Do not round intermediate calculations. Round 1Jirour answers to 4 decimal places.) Y E Z _9 You are given the following information conceming a stoclc and the market: Retuns Yea trinket Stock 2005 1 5% 22% 2000 1 El 1 El 20 1 0 25 5 201 1 1 2 22 20 12 35 1 5 201 3 1 5 2? 1. Calculate the average return and standard deviation for the market and the stock. [Use excel to complete the problem. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "\"35" sign in your response} Mallet Stock Average return 15.1? a '15 12.00 a 0-5 Standard deviation 15.?3 a iii: 18.55 a 0-1: 2. Calculate the correlation behveen the stock and the market, as well as the stock's beta. [Use excel to complete the problem. Do not round intermediate calculations. Round your Correlation answer to 2 decimal places and Beta answer to 4 decimal places.} Correlation m a Beta m a
