Boris Stock Has an Average Return of 15 Percent

question 34

Multiple Choice

Boris stock has an average return of 15 percent. Its beta is 1.5. Its standard deviation of returns is 25 percent. The average risk-free rate is 6 percent. The Sharpe index for Boris stock is

• A) 0.35.
• B) 0.36.
• C) 0.45.
• D) 0.28.
• E) none of the above

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