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The market risk premium for next period is 5.00% and the risk-free rate is 1.90%. Stock Z has a beta of 0.719 and an expected
The market risk premium for next period is 5.00% and the risk-free rate is 1.90%. Stock Z has a beta of 0.719 and an expected return of 10.40%. What is the:
a) Market's reward-to-risk ratio?:
b) Stock Z's reward-to-risk ratio:
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