Market risk premium-reward-to-risk ratios for stocks

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Stock Y has a beta of 1.8 and an expected return of 18.2 percent. Stock Z has a beta of .8 and an expected return of 9.6 percent. If the risk-free rate is 5.2 percent and the market risk premium is 6.7 percent, the reward-to-risk ratios for stocks Y and Z are___________ and__________ percent, respectively. Since the SML reward-to-risk is_________ percent, Stock Y is_______ and Stock Z is __________ . (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Reference no: EM13939618

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