Question: A stock's average return is 11 percent. The average risk-free rate is 2 percent. The stock's beta is 1 and its standard deviation of returns

A stock's average return is 11 percent. The average risk-free rate is 2 percent. The stock's beta is 1 and its standard deviation of returns is 12 percent. What is the Sharpe Index?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!