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The market risk premium for next period is9.30%and the risk-free rate is3.12% .Stock Z has a beta of0.619and an expected return of8.51%. Compute the following:

The market risk premium for next period is9.30%and the risk-free rate is3.12% .Stock Z has a beta of0.619and an expected return of8.51%. Compute the following:

a) Market's reward-to-risk ratio :

b) Stock Z's reward-to-risk ratio :

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