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The market risk premium for next period is 6.90% and the risk-free rate is 1.30%. Stock Z has a beta of 1.154 and an expected

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The market risk premium for next period is 6.90% and the risk-free rate is 1.30%. Stock Z has a beta of 1.154 and an expected return of 14.30%. Calculate the following. Please write your answers as percentages (e.g. .1234 should be written as 12.34): A. Market's reward-to-risk ratio: % B. Stock Z's reward-to-risk ratio: %

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