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Zilo Stock Has an Average Return Minus the Average Risk-Free

Question 62

Multiple Choice

Zilo stock has an average return minus the average risk-free rate of 5 percent, a beta of 1, and a standard deviation of returns of 20 percent. The Sharpe index of Zilo stock is


A) 0.05.
B) 0.35.
C) 0.25.
D) 0.45.
E) none of the above

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