Reward-to-risk ratios for stocks

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Stock Y has a beta of 1.4 and an expected return of 15.2 percent. Stock Z has a beta of .7 and an expected return of 9.1 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. (Do not round intermediate

Reference no: EM13763927

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