A stock's average return is 10 percent. The average risk-free rate is 7 percent. The standard deviation of the stock's return is 4 percent, and the stock's beta is 1.5. What is the Treynor index for the stock?
A).03
B).75
C)1.33
D).02
E)50

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The Answer of A stock's average return is 10 percent. The average risk-free rate is 7 percent. The standard deviation of the stock's return is 4 percent, and the stock's beta is 1.5. What is the Treynor index for the stock?
A).03
B).75
C)1.33
D).02
E)50

A Stock's Average Return Is 10 Percent