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
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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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%
Transcribed Image Text: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%
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