Morgan Stock Has an Average Return Minus the Average Risk-Free

question 22

Multiple Choice

Morgan stock has an average return minus the average risk-free rate of 12.5 percent, a beta of 2.5, and a standard deviation of returns of 20 percent. The Treynor index of Morgan stock is

• A)0.0625.
• B)0.05.
• C)0.35.
• D)0.03.
• E)None of these are correct.

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Promote

To actively support or encourage interest in an item, cause, or idea, often through advertising or publicity.

Altruistic

Showing a selfless concern for the well-being of others, often characterizing acts done without expectation of personal gain.

Pay It Forward

A concept involving doing a good deed for others without expecting anything in return, often with the hope that the beneficiary will pass on the good deed to others.

Participation

Definition: The act of taking part or being actively involved in an activity, event, or process.