Question
Assume the following information for two stocks: Average return for Sooner stock=16% Average return for Longhorn stock = 14% Average risk-free rate=D10% Sooner' s
Assume the following information for two stocks: Average return for Sooner stock=16% Average return for Longhorn stock = 14% Average risk-free rate=D10% Sooner' s stock beta is 1.2 and Longhorn's beta is 1.0, What are their Treynor index? And how to value the risk?
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Financial Markets and Institutions
Authors: Jeff Madura
12th edition
9781337515535, 1337099740, 1337515531, 978-1337099745
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