A risky asset has a beta of .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 .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)/.90 = 5.233%

A Risky Asset Has a Beta of