The expected return rate of A stock is 8%, the risk-free return rate is 4%, and the variance of A stock is 4%, then the Sharpe ratio of A stock is
A: 0.2
B: 1
C: 2
D: 0.4
A: 0.2
B: 1
C: 2
D: 0.4
举一反三
- You own a portfolio which isevenly distributed among U.S. Treasury bills, Stock A with a beta of .84, stock B with a beta of 1.48, and stock C, whichis equally as risky as the market. The risk-free rate of return is 4 percent and the expected return on the
- A stock with a beta of zero would be expected to have a rate of return equal to A: the risk-free rate. B: the market rate. C: the prime rate. D: the average AAA bond.
- A preferred stock pays an annual dividend of $3.20. What is one share of this stock worth today if the rate of return is 11.75 percent?
- Assume the following:·The real risk-free rate of return is 3%.·The expected inflation premium is 5%.·The market-determined interest rate of a security is 12%.The sum of the default risk premium, liquidity premium, and maturity premium for the security isclosestto: A: 10%. B: 4%. C: 8%.
- Given Gitech's beta of 1.55 and a risk free rate of 8 percent, what is the expected rate of return assuming a 14 percent market return? A: 12.4% B: 14.3% C: 17.3% D: 20.4%