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A Stock's Average Return Is 11 Percent

Question 13

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) 0.05
B) 0.5
C) 0.1
D) 0.02
E) 0.2

Correct Answer:

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