A Risky Asset Has a Beta of

question 40

Multiple Choice

A risky asset has a beta of .90 and an expected return of 7.4 percent.What is the reward-to-risk ratio if the risk-free rate is 2.69 percent?

• A)4.04 percent
• B)5.23 percent
• C)6.51 percent
• D)8.41 percent
• E)11.59 percent

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