A Stock's Average Return Is 11 Percent

question 7

Multiple Choice

A stock's average return is 11 percent. The average risk-free rate is 9 percent. The stock's beta is 1, and the standard deviation of its returns is 10 percent. What is the Sharpe index?

• A).05
• B).5
• C).1
• D).02
• E).2

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Definitions:

Water Volume

The quantity of three-dimensional space occupied by a liquid or gas, often measured in liters, gallons, or cubic meters.

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Substances produced for various industrial and manufacturing processes, often used in creating products or in operations.

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The measure of how hot or cold water is, which can significantly affect aquatic life and ecosystem health.