The risk-free rate is 26 and the expected market return is


1) The risk-free rate is 2.6 % and the expected market return is 7 %. A risky stock has a beta of 1.9.

If CAPM holds, what are the Treynor indexes of the market and the risky stock?

2) The risk-free rate is 0.6 % and the expected market return is 10.5%. A risky stock has a beta of 1.52.

If CAPM holds, what are the Treynor indexes of the market and the risky stock?

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Financial Management: The risk-free rate is 26 and the expected market return is
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