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A Stock's Average Return Is 11 Percent

Question 7

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 the standard deviation of its returns is 10 percent. What is the Sharpe index?


A) .05
B) .5
C) .1
D) .02
E) .2

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