The Reward-To-Risk Ratio Can Be Defined as The

question 315

Multiple Choice

The reward-to-risk ratio can be defined as the:

• A) Risk premium minus the risk-free rate of return.
• B) Market risk premium divided by the beta of a risky stock.
• C) Slope of the security market line.
• D) Beta of a risky stock.
• E) Market risk premium minus the risk free rate of return divided by a stock's beta.

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