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1. Stock Z has a correlation of zero with the market. An analyst finds that the alpha of Z is equal to 0.5%. The Treynor

1. Stock Z has a correlation of zero with the market. An analyst finds that the alpha of Z is equal to 0.5%. The Treynor ratio of stock Z a. Equal to zero b. Positive but lower the than the Treynor ratio of the market portfolio c. Equal to that of the market portfolio d. Could be either positive or negative e. Approaching infinity

Answer is e. Why?

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