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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Definitions:

Unusual Name

A name that is rare, unique, or uncommonly heard, often standing out in a particular cultural or linguistic context.

Statement Approach

A sales technique where the first communication with a prospect addresses a specific benefit or value proposition of the product or service.

Prospect's Time

The period a potential buyer allocates to engage with a salesperson, crucial for presenting and discussing product or service offerings.

Sincere Desire

A genuine and earnest wish or aspiration to achieve a particular outcome or goal.