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Stock Y has a beta of 1.20 and an expected return of 15.00 percent. Stock Z has a beta of .70 and an expected return
Stock Y has a beta of 1.20 and an expected return of 15.00 percent. Stock Z has a beta of .70 and an expected return of 10 percent. If the risk-free rate is 5.0 percent and the market risk premium is 8.0 percent, what are the reward-to-risk ratios of Y and Z? (Do not round intermediate calculations. Round your answers to 4 decimal places.) |
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