A Stock's Average Return Is 11 Percent

question 61

Multiple Choice

A stock's average return is 11 percent. The average risk-free rate is 9 percent. The stock's beta is 1 and its standard deviation of returns is 10 percent. What is the Sharpe Index?

• A).05
• B).5
• C).1
• D).02
• E).2

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Definitions:

Mental Impairments

Conditions that disrupt a person's thinking, feeling, mood, ability to relate to others, and daily functioning, often requiring clinical care or intervention.

Rehabilitation

The process of helping an individual return to an optimal level of physical, mental, and social health, especially after injury, addiction, or imprisonment.

Socially Constructed

A concept or perception developed by society through cultural and social practice instead of existing inherently.

Menopause

The natural decline in reproductive hormones when a woman reaches her 40s or 50s, marking the end of the menstrual cycle.