A Stock's Average Return Is 10 Percent

question 8

Multiple Choice

A stock's average return is 10 percent. The average risk-free rate is 7 percent. The standard deviation of the stock's return is 4 percent, and the stock's beta is 1.5. What is the Treynor Index for the stock?

• A).03
• B).75
• C)1.33
• D).02
• E)50

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