Stock A has a beta of 1.28 and an expected risk premium of 11.54 percent. Stock B has a beta of 1.5 and an expected risk premium of 12 percent. If the risk-free rate is 4.3 percent, what is the stock B's reward-to-risk ratio? 8% 9.02% 5.66% 11.54% 7.24% 12%
Stock A has a beta of 1.28 and an expected risk premium of 11.54 percent. Stock B has a beta of 1.5 and an expected risk premium of 12 percent. If the risk-free rate is 4.3 percent, what is the stock B's reward-to-risk ratio? 8% 9.02% 5.66% 11.54% 7.24% 12%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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