Stock y has a beta of 18 and an expected return of 182


Stock Y has a beta of 1.8 and an expected return of 18.2 percent. Stock Z has a beta of 0.8 and an expected return of 9.6 percent. If the risk-free rate is 5.2 percent and the market risk premium is 6.7 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 (undervalued/overvalued) and Stock Z is (undervalued/overvalued) (Round your answers to 2 decimal places. (e.g., 32.16))

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Financial Management: Stock y has a beta of 18 and an expected return of 182
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