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Stock Average Monthly Return Annualized Risk-Free Rate Beta A 1.1% 0.6% 1.2 B 1.4% 0.6% 1.1 Based on the information in the table, which stock

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Stock Average Monthly Return Annualized Risk-Free Rate Beta A 1.1% 0.6% 1.2 B 1.4% 0.6% 1.1 Based on the information in the table, which stock has a higher return? O Stock A Stock B Based on the information in the table, which stock has a higher level of risk? Stock A O Stock B There are several ways in which investors can measure a stock's risk. One is to examine the volatility of stock returns by using the Treynor index. Based on the information in the table, the Treynor index for stock A is: O 0.2083 O 0.2917 O 0.4167 O 0.625 Based on the information in the table, the Treynor index for stock B is: O 0.4364 O 0.5818 O 0.7273 O 0.9455 Based on the Treynor ratios, which stock offers more expected excess return per unit of risk? O Stock A O Stock B

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