9. Risk-adjusted stock measurement methods: Treynor index Suppose you know the following information about two stocks: Stock Annualized Risk-Free Rate Beta Average Monthly Return 0.9% A 0.6% 1.5 B 0.8% 0.6% 1.5 Based on the information in the table, which stock has a higher return? O Stock A O Stock B Based on the information in the table, which stock has a higher level of risk? O Stock A O 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: O 0.1 O 0.14 O 0.2 O 0.3 Based on the information in the table, the Treynor index for stock B is: O 0.08 O 0.1067 O 0.1333 O 0.1733 Based on the Treynor ratios, which stock offers more expected excess return per unit of risk? O Stock A O Stock B