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

question 31

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 the above

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