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 indexfor the stock?
A) 0.03
B) 0.75
C) 1.33
D) 0.02
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 indexfor the stock?
A) 0.03
B) 0.75
C) 1.33
D) 0.02
E) 50

A Stock's Average Return Is 10 Percent