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The Reward-To-Risk Ratio Can Be Defined as The

Question 315

Multiple Choice

The reward-to-risk ratio can be defined as the:


A) Risk premium minus the risk-free rate of return.
B) Market risk premium divided by the beta of a risky stock.
C) Slope of the security market line.
D) Beta of a risky stock.
E) Market risk premium minus the risk free rate of return divided by a stock's beta.

Correct Answer:

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