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28 Sep 2019
Stock Y has a beta of 1.0 and an expected return of 13.0 percent. Stock Z has a beta of 0.5 and an expected return of 7.8 percent. If the risk-free rate is 5.5 percent and the market risk premium is 6.5 percent, the reward-to-risk ratios for stocks Y and Z are __________ and __________ percent, respectively. Since the SML reward-to-risk is __________ percent, Stock Y is ________ and Stock Z is ________ . (Round your answers to 2 decimal places.
Stock Y has a beta of 1.0 and an expected return of 13.0 percent. Stock Z has a beta of 0.5 and an expected return of 7.8 percent. If the risk-free rate is 5.5 percent and the market risk premium is 6.5 percent, the reward-to-risk ratios for stocks Y and Z are __________ and __________ percent, respectively. Since the SML reward-to-risk is __________ percent, Stock Y is ________ and Stock Z is ________ . (Round your answers to 2 decimal places.
Elin HesselLv2
28 Sep 2019
