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Assume the following information over a five-year period: Average risk free rate = 6% Average return for Crane stock = 11% Average return for Load

Assume the following information over a five-year period:

Average risk free rate = 6%

Average return for Crane stock = 11%

Average return for Load stock = 14%

Standard deviation of Crane Stock returns = 2%

Standard deviation of Load stock returns = 4%

Beta of Crane stock = 0.8

Beta of Load stock = 1.1

Determine which stock has higher risk adjusted returns when using the Sharpe index. Which stock has higher risk adjusted returns when using the Treynor index?

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