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Stock Y has a beta of 1.5 and an expected return of 15.7 percent. Stock Z has a beta of .6 and an expected return
Stock Y has a beta of 1.5 and an expected return of 15.7 percent. Stock Z has a beta of .6 and an expected return of 8.2 percent. If the risk-free rate is 5.3 percent and the market risk premium is 6.3 percent, the reward-to-risk percent, respectively. Since ratios for Stocks Y and Z are and 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.) Stock Y has a beta of 1.5 and an expected return of 15.7 percent. Stock Z has a beta of .6 and an expected return of 8.2 percent. If the risk-free rate is 5.3 percent and the market risk premium is 6.3 percent, the reward-to-risk percent, respectively. Since ratios for Stocks Y and Z are and 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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