Stock X Has a Reward-To-Risk Ratio of 6

question 76

Multiple Choice

Stock X has a reward-to-risk ratio of 6.2, and Stock Y has a reward-to-risk ratio is 8.1. You know:

• A) Stock Y is underpriced.
• B) Stock X is overpriced.
• C) Stock X is a better investment.
• D) Stock Y is a better investment.
• E) The reward-to-risk ratio of the market is between 6.2 and 8.1.

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