Required:

Fill in the missing values below:

Stock Y has a beta of 1.2 and an expected return of 15.3 percent. Stock Z has a beta of 0.8 and an expected return of 10.7 percent. If the risk-free rate is 6 percent and the market risk premium is 7 percent, the reward-to-risk is 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 and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16)