A risky asset has a beta of 0.90 and an expected return of 7.4 percent.What is the reward-to-risk ratio if the risk-free rate is 2.69 percent?
A) 4.04 percent
B) 5.23 percent
C) 6.51 percent
D) 8.41 percent
E) 11.59 percent

Name: A risky asset has a beta of 0.90 and an expected return of 7.4 percent.What is the reward-to-risk ratio if the risk-free rate is 2.69 percent? A) 4.04 percent B) 5.23 percent C) 6.51 percent D) 8.41 percent E) 11.59 percent
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Quizplus · Accepted Answer

Slope = (7.4 − 2.69)/0.90 = 5.233%

A Risky Asset Has a Beta of 0