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A Stock's Average Return Is 10 Percent

Question 82

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

Correct Answer:

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