200k views
5 votes
Stock Y has a beta of 1.4 and an expected return of 14.7 percent. Stock Z has a beta of 0.7 and an expected return of 8.7 percent. If the risk-free rate is 5.2 percent and the market risk premium is 6.2 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 undervalued or overvalued and Stock Z is undervalued or overvalued.

User Felixmosh
by
4.7k points

1 Answer

5 votes

Answer:

ibxZx jnzscv dbfsdszADscfvgbfgdvc

Step-by-step explanation:

User Instance Hunter
by
5.4k points