W Price = (P/E) x EPS: V-D/k: Vo D/(k-g); k=E()=+B[E(ru)- E(n)=+B[E(M)-rd: P/E = (1/earnings yield). Vo [E(D) + E(P)(1+k) Bp=EWB: S= [E(r)-ro: Sp[E(rp)-/op: PAS [COV (A. fe)(0Axell Cov (ATB)= PABOA OB: Capital Gain yield = [(Ps-PayPal: Dividend yield - Div/Pe HPR = [(Ps-Pa) + Div/Ps: HPR = Capital Gain Yield + Dividend Yield Arithmetic Average = Sum of returns in each period divided by number of periods; Geometric Return = [(1+r) x (1+) x... (1+r)-1: E(rp) -ZWE(); R=r+E() Company ABC has an expected rate return of 16% and a standard deviation of 10%. The risk free rate is 5%. What is the reward to variability ratio? C 1.1 0.75 0.40 O.55