A Risky Asset Has a Beta of 1

question 69

Multiple Choice

A risky asset has a beta of 1.30 and an expected return of 10.3%. What is the reward-to-risk ratio if the risk-free rate is 1.34%?

• A)3.98%
• B)5.23%
• C)6.89%
• D)7.23%
• E)8.23%

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