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Suppose you know the following information about two stocks: Stock A Average Monthly Return Annualized Risk-Free Rate 0.9% 0.8% 0.6% 0.6% Beta 1.6 1.6 B

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Suppose you know the following information about two stocks: Stock A Average Monthly Return Annualized Risk-Free Rate 0.9% 0.8% 0.6% 0.6% Beta 1.6 1.6 B Based on the information in the table, which stock has a higher return? Stock A Stock B Based on the information in the table, which stock has a higher level of risk? Stock A 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. a Based on the information in the table, the Treynor index for stock Ais: 0.0938 O 0.1313 O 0.1875 O 0.2813 Based on the information in the table, the Treynor Index for stock is: 0.075 O 0.1 O 0.125 O 0.1625 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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