Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A stock has a beta of 1.30 and an expected return of 11.6 percent. If the risk-free rate is 4.5 percent, what is the stock's

A stock has a beta of 1.30 and an expected return of 11.6 percent. If the risk-free rate is 4.5 percent, what is the stock's reward-to-risk ratio?

- 5.46%

- 7.19%

- 5.04%

- 4.78%

- 8.92%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sam Bankman Fried

Authors: Evelyn Everlore

1st Edition

979-8866401925

More Books

Students also viewed these Finance questions