Determine the reward-to-risk ratio

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Which of the following best defines the reward-to-risk ratio? Multiple Choice

  • Market risk premium divided by the beta of a risky stock.
  • Risk premium minus the risk-free rate of return.
  • Slope of the security market line.
  • Beta of a risky stock.
  • Market risk premium minus the risk free rate of return divided by a stock's beta.

Reference no: EM133112867

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