Required:

Fill in the missing values below:

Stock Y has a beta of 0.9 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 percent and the market risk premium is 6 percent, the reward-to-risk

ratios for stock Y and Z are XXXX and XXXX

percent, respectively. Since the SML reward-to-risk is XXXX percent, Stock Y is XXXX and Stock Z is XXXX

Please fill in XXXX for each XXXX