A Risky Asset Has a Beta of

Multiple Choice

A risky asset has a beta of .88 and an expected return of 7.4 percent. What is the reward-to-risk ratio if the risk-free rate is 2.8 percent?

A) 4.04 percent
B) 5.23 percent
C) 6.51 percent
D) 8.41 percent
E) 11.59 percent