11. Risk-adjusted stock measurement methods: Treynor index Suppose you know the following information about two stocks:...

  

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11. Risk-adjusted stock measurement methods: Treynor index Suppose you know the following information about two stocks: Stock Average Monthly Return Annualized Risk-Free Rate Beta A 1.5% 0.8% 0.3% 0.3% 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 1.3 1.6 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: Based on the information in the table, the Treynor index for stock B is: 11. Risk-adjusted stock measurement methods: Treynor index Suppose you know the following information about two stocks: Stock Average Monthly Return Annualized Risk-Free Rate Beta A 1.5% 0.8% 0.3% 0.3% 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 1.3 1.6 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: Based on the information in the table, the Treynor index for stock B is: