The appraisal ratio is equal to the stock's ____ divided by its ______.
A) diversifiable risk; beta
B) beta; alpha
C) alpha; beta
D) alpha; diversifiable risk

Name: The appraisal ratio is equal to the stock's ____ divided by its ______. A) diversifiable risk; beta B) beta; alpha C) alpha; beta D) alpha; diversifiable risk
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Question

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The appraisal ratio is calculated by dividing the stock's alpha by its diversifiable risk, which measures the stock's performance relative to its unsystematic risk.

The Appraisal Ratio Is Equal to the Stock's ____ Divided