What is the reward-to-risk ratio

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1. Stock Y has a beta of 1.1 and an expected return of 14.9 percent. Stock Z has a beta of 0.70 and an expected return of 9 percent. If the risk-free rate is 4 percent and the market risk premium is 7 percent, what is the (percentage) reward-to-risk ratio of Y? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

2. A stock has a beta of 0.8 and an expected return of 12.6 percent. If the risk-free rate is 4.3 percent, what is the market risk premium? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Reference no: EM131906572

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