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

question 44

Multiple Choice

Zilo stock has an average return minus the average risk-free rate of 5 percent, a beta of 1, and a standard deviation of returns of 20 percent. The Sharpe index of Zilo stock is

• A)0.05.
• B)0.35.
• C)0.25.
• D)0.45.
• E)None of these are correct.

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Definitions:

Marketing Communications

The various methods and tools used by a company to relay messages and information to market its products or services.

Promotional Mix

A blend of different marketing methods such as advertising, sales promotion, public relations, direct marketing, and personal selling used to achieve specific marketing goals.

Prospective Buyers

Individuals or entities showing interest in purchasing products or services.

Marketing Mix

The blend of product, price, place, and promotion strategies used by a company to market its products or services effectively.