Question: Problem 12-12 Relative Valuation (LO3, CFA2) Stock Y has a beta of 0.80 and an expected return of 15.85 percent. Stock Z has a beta

 Problem 12-12 Relative Valuation (LO3, CFA2) Stock Y has a beta

Problem 12-12 Relative Valuation (LO3, CFA2) Stock Y has a beta of 0.80 and an expected return of 15.85 percent. Stock Z has a beta of 0.70 and an expected return of 6 percent. If the risk-free rate is 6.0 percent and the market risk premium is 10.0 percent, what are the reward-to-risk ratios of Y and Z? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Stock Y Stock Z Reward-to-Risk Ratio % %

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