Problem $11-18$ Reward$-$to$-$Risk Ratios

068 pants Problem 11-18 Reward-to-Risk Ratios Stock Y has a beta of 1.4 and an expected retum of 14.7 percent Stock Z has a beta of 0.7 and an expected retum of & 7 percent If the risk-free rate is 52 percent and the market risk premium is 6.2 percent, the reward-to-risk ratios for stocks Y and Z are percent, respectively. Since the SML reward-to-risk is 721 and 514 undervalued and Stock Z is undervalued 4.6 percent, Stock Y is . (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)