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    Exam 12: Return, Risk, and the Security Market Line
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    A Risky Asset Has a Beta of 1
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A Risky Asset Has a Beta of 1

Question 69

Question 69

Multiple Choice

A risky asset has a beta of 1.30 and an expected return of 10.3%. What is the reward-to-risk ratio if the risk-free rate is 1.34%?


A) 3.98%
B) 5.23%
C) 6.89%
D) 7.23%
E) 8.23%

Correct Answer:

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