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Assume the following information over a five-year period.

• Average risk-free rate = 6%

• Average return for Crane stock = 11%

• Average return for Load stock = 14%

•Standard deviation of Crane stock returns = 2%

• Standard deviation of Load stock returns = 4%

• Beta of Crane stock = 0.8

• Beta of Load stock = 1.1

Determine which stock has higher risk-adjusted returns according to the Sharpe Index. Which stock has higher risk-adjusted returns according to the Treynor Index? Show your work.

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