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9. Risk-adjusted stock measurement methods: Treynor index Suppose you know the following information about two stocks: Based on the information in the table, which stock

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9. Risk-adjusted stock measurement methods: Treynor index Suppose you know the following information about two stocks: Based on the information in the table, which stock has a higher return? Stock A Stock B Based on the information in the table, which stock has a higher level of risk? Stock A. Stock B There are several ways in which investors can measure a stock's risk. One is to examine the volatility of stock returns by using the Treynor index. Based on the information in the table, the Treynor index for stock A is: 0.09380.18750.28130.375 Based on the information in the table, the Treynor index for stock B is: 0.0750.1250.16250.2625 Based on the Treynor ratios, which stock offers more expected excess return per unit of risk? Stock A Stock B

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