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1. Stock Y has a beta of 1.05 and an expected return of 13.10 percent. Stock Z has a beta of 0.70 and an expected return of 7 percent. If the risk-free rate is 5.0 percent and the market risk premium is 7.4 percent, what are the reward-to-risk ratios of Y and Z? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.

2. You own 400 shares of Stock A at a price of $50 per share, 290 shares of Stock B at $75 per share, and 700 shares of Stock C at $27 per share. The betas for the stocks are 0.6, 1.2, and 0.5, respectively. What is the beta of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

3. A stock has an expected return of 13.2 percent, a beta of 1.40, and the return on the market is 10.10 percent. What must the risk-free rate be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Financial Management, Finance

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