Market risk premium-reward-to-risk ratios

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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__________ .

Reference no: EM13939339

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