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Stock Y has a beta of 1.4 and an expected return of 16.5 percent. Stock Z has a beta of .7 and an expected return
Stock Y has a beta of 1.4 and an expected return of 16.5 percent. Stock Z has a beta of .7 and an expected return of 9.8 percent. If the risk-free rate is 5.9 percent and the market risk premium is 6.9 percent, the reward-to-risk ratios for Stocks Y and Z are _____ and _____ 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)
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