Stock y has a beta of 9 and an expected return of 112


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

1) The Security Market Line "SML" reward-to-risk is?

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Financial Management: Stock y has a beta of 9 and an expected return of 112
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