Both stocks have the same reward-to-risk ratio what is the, Financial Management

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Both stocks have the same reward-to-risk ratio what is the

Stock A has an expected return of 12 percent and a beta of 1.2. Stock B has an expected return of 9 percent and a beta of .8. Both stocks have the same reward-to-risk ratio. What is the risk-free rate? Please calculate without using excel.

A. 2.5 percent B. 3.0 percent C. 3.5 percent D. 4.0 percent E. 4.5 percent

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Financial Management: Both stocks have the same reward-to-risk ratio what is the

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