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Compute the market reward-to-risk ratio

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Reference no: EM132753435

Problem 1: The market risk premium for next period is 5.18% and the risk-free rate is 1.00% . Stock Z has a beta of 0.997 and an expected return of 9.70%. Compute the following:

a) Market's reward-to-risk ratio :
b) Stock Z's reward-to-risk ratio

Reference no: EM132753435

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