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I think the answer is C but Im not confident in my findings. Can someone concur or explain if they get a different answer. Suppose
I think the answer is C but Im not confident in my findings. Can someone concur or explain if they get a different answer.
Suppose the expected return for the market portfolio and risk-free rate are 13% and 3% respectively. Stocks A, B, and C have Treynor measures of 0.24, 0.16, and 0.11, respectively. Based on this information an investor should
Buy stocks A, B, and C |
Buy stocks A and B and sell stock C |
Buy stock A and sell stocks B and C |
Sell stocks A, B, and C |
Hold stocks A, B, and C |
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