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ris owns a stock with an annualized return of 8.45 percent. If the risk-free rate is 2.25 percent, market returns are 9.00 percent, the standard

ris owns a stock with an annualized return of 8.45 percent. If the risk-free rate is 2.25 percent, market returns are 9.00 percent, the standard deviation of the stock returns is 13.30 percent, the standard deviation of market returns is 11.40 percent, and the stocks beta is 1.2, what is Iriss Modigliani ratio for the investment?

a. -2.75 percent
b. -1.44 percent
c. 1.72 percent
d. 4.41 percen

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