What is the reward-to-risk percent

Assignment Help Financial Management

Reference no: EM13768174

Stock Y has a beta of .9 and an expected return of 11.2 percent. Stock Z has a beta of 0.5 and an expected return of 7.2 percent. If the risk-free rate is 5.0 percent and the market risk premium is 6.0 percent, the reward-to-risk ratios for stocks Y and Z are 6.89 and 4.40 percent, respectively.

Since the SML reward-to-risk is What ?

What is the Reward-to-risk percent?

Reference no: EM13768174

Questions Cloud

The annual provision for bad debt is recorded : The annual provision for bad debt is recorded as 5% of ending A/R (317,420). Use the allowance method. Round to the nearest $1. Interest has accrued at 6.5% on the long-term notes payable (1,200,000) since July 1 of this year.

Implementing alternative energy resource : Discuss three ways to conserve energy in your routine life. Consider home, work, transportation, and consumption of food and goods.

Discuss various sources of ideas for legislative proposals : Discuss the link between agenda setting and the development of legislation. Discuss the various sources of ideas for legislative proposals.

Hazmat emergancies article review : For this assignment, you are required to read the article entitled " HazMat E mergencies: Decontamination and V ictim C hain of S urvival , " by Gunderson, Helikson, and Heffner (2014), and write a review. The article may be found in the Academic ..

What is the reward-to-risk percent : Stock Y has a beta of .9 and an expected return of 11.2 percent. Stock Z has a beta of 0.5 and an expected return of 7.2 percent. If the risk-free rate is 5.0 percent and the market risk premium is 6.0 percent, the reward-to-risk ratios for stocks Y ..

Find the expected return and standard deviation of portfolio : Find the expected return and standard deviation of a portfolio that is invested 80% in Stock A and 20% in Stock B.

Which scenes engaged you the most : Which scenes engaged you the most? Which ones were the least engaging? Why? What kept you interested throughout the film? Was it acting, plot, lighting, etc? How so?

What is the value of the bondholders call option : A 10-year maturity convertible bond with a face value of $1,000 and a 6% coupon on a company with a bond rating of Aaa is selling for $1,050. The bond pays interest annually. Each bond can be exchanged for 20 shares, and the stock price currently is ..

Ethics and government contracts : Locate information for "ethics and government contracts" and policies and procedures or a "code of ethics" for contracts. US contracts only as well as references. Find three specific case examples for unethical incidences dealing with contracts

User Account

All Pages