What are reward-to-risk ratios

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Stock Y has a beta of 1.15 and an expected return of 13.20 percent. Stock Z has a beta of .90 and an expected return of 10 percent. If the risk-free rate is 5.0 percent and the market risk premium is 7.8 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: EM131561406

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