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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 of

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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 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 the SML reward-to-risk is overvalued rounded to 2 decimal places, e.g., 32.16.) and percent, respectively. Since percent, Stock Y is undervalued and Stock Z is . (Do not round intermediate calculations and enter your answers as a percent

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