A Stock's Average Return Is 10 Percent

question 82

Multiple Choice

A stock's average return is 10 percent. The average risk-free rate is 7 percent. The standard deviation of the stock's return is 4 percent, and the stock's beta is 1.5. What is the Treynor index for the stock?

• A).03
• B).75
• C)1.33
• D).02
• E)50

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Definitions:

Postbox Rule

A legal principle that specifies the exact moment a contract is considered accepted, which is when an acceptance is communicated, even if it has not yet been received by the offeror.

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Online Communications

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