Morgan Stock Has an Average Return of 15 Percent, a Beta

question 25

Multiple Choice

Morgan stock has an average return of 15 percent, a beta of 2.5, and a standard deviation of returns of 20 percent. The Treynor index of Morgan stock is

• A)0.04.
• B)0.05.
• C)0.35.
• D)0.03.
• E)none of the above

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