Stock y has a beta of 10 and an expected return of 13


Stock Y has a beta of 1.0 and an expected return of 13 percent. Stock Z has a beta of .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. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

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Financial Management: Stock y has a beta of 10 and an expected return of 13
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