What are reward-to-risk ratios

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Stock Y has a beta of 1.00 and an expected return of 13.05 percent. Stock Z has a beta of .60 and an expected return of 8 percent. If the risk-free rate is 5.0 percent and the market risk premium is 7.2 percent, what are the reward-to-risk ratios of Y and Z? (Do not round intermediate calculations. Round your answers to 4 decimal places.)

Reference no: EM131554147

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