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

question 62

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 the above

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Definitions:

Arbitration Initiation

The formal starting process of arbitration, where a dispute is submitted to an impartial third party for a binding decision.

Court Alert

A notification system designed to inform participants or interested parties about updates or changes in court schedules, rulings, or other relevant judicial information.

ADR

Stands for Alternative Dispute Resolution, which encompasses various methods outside of court proceedings to resolve disputes, including arbitration and mediation.

Federal Arbitration Act

A United States federal law that provides for the enforcement of arbitration agreements and governs the proceedings of arbitration in commercial disputes.