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Assume the following information for Morgan stock and Boris stock. Average return for Morgan stock = 13% Average return for Boris stock = 15% Average
Assume the following information for Morgan stock and Boris stock.
- Average return for Morgan stock = 13%
- Average return for Boris stock = 15%
- Average risk-free rate = 6%
- Standard deviation for Morgan stock = 20%
- Standard deviation for Boris stock = 25%
- Beta of Morgan stock = 1.5
- Beta of Boris stock = 2.5
The Sharpe index for Morgan stock is ________, and the Sharpe index for Boris stock is ________.
a. 0.28; 0.45
b. 0.35; 0.36
c. 0.36; 0.35
d. 0.45; 0.28
e. None of these choices are correct.
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