# Stock Y has a beta of 1.05 and an expected return of 14.1 percent

## Question: Stock Y has a beta of 1.05 and an expected return…

Stock Y has a beta of 1.05 and an expected return of 14.1 percent. Stock Z has a beta of .70 and an expected return of 7 percent. If the risk-free rate is 5 percent and the market risk premium is 7.4 percent, what are the reward-to-risk ratios of Y and Z?