Compute the market reward-to-risk ratio

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Reference no: EM132016023

The market risk premium for next period is 9.83% and the risk-free rate is 3.92% . Stock Z has a beta of 1.394 and an expected return of 9.26%.

Compute the following:

a) Market's reward-to-risk ratio :

b) Stock Z's reward-to-risk ratio :

Reference no: EM132016023

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