Stock y has a beta of 14 and an expected return of 153


Stock Y has a beta of 1.4 and an expected return of 15.3 percent. Stock Z has a beta of .6 and an expected return of 8.3 percent. If the risk-free rate is 5.4 percent and the market risk premium is 6.4 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__________ .

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Financial Management: Stock y has a beta of 14 and an expected return of 153
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