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Company A has a 12.65% expected return and a standard deviation of 57.93%. The risk-free rate is 3.2% and the market risk premium is 9%.
Company A has a 12.65% expected return and a standard deviation of 57.93%. The risk-free rate is 3.2% and the market risk premium is 9%. Calculate SPRs coefficient of variation (CV), that is, the risk-to-reward ratio.
a. 4.58
b. 9.55
c. 0.22
d. 0.13
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