Question
The risk-free rate is 2.6% and the expected market return is 9.3%. A risky stock has a beta of 1.44. If CAPM holds, what are
The risk-free rate is 2.6% and the expected market return is 9.3%. A risky stock has a beta of 1.44. If CAPM holds, what are the Treynor indexes of the market and the risky stock?
1. The market's Treynor Index is______%.(Provide the answer in % and round to one decimal place.)
2.The stock's Treynor Index is______%.(Provide the answer in % and round to one decimal place.)
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Comparative Public Budgeting
Authors: George M Guess
2nd Edition
1316648109, 978-1316648100
