A stock has a beta of 92 and an expected return of 8.57 percent. If the...

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Answer 1

Answer #1

E. 6.27%

Reward-to-risk ratio = (Expected return - Risk-free rate) / Beta

Reward-to-risk ratio = (0.0857 - 0.028) / 0.92

Reward-to-risk ratio = 0.0627 or 6.27%

Answer 2

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