Determine which stock has higher risk-adusted returns


Assume the following information over a five year period.

*average risk-free rate=6%

*Average return for crane stock=11%

*Average return for load stock=14%

*standard deviation of crane stock returns=2%

*Standard deviation of load stock returns=4%

*Beta of crane stock=0.8

*Beta of load stock=1.1

Determine which stock has higher risk-adusted returns according to Sharpe index. Which stock has higher risk-adjusted returns according to the Treynor index? Show your work.

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Financial Management: Determine which stock has higher risk-adusted returns
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