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Determine which stock has higher risk-adjusted returns

Assume the following information over a five-year period.

Average risk0free rate = 6%
Average return for Crane Stock = 11%
Average return for Load Stock = 14%
Standard Deviation Crane Stock Returns = 2%
Standard Deviation Load Stock Returns = 4%
Beta of Crane Stock = 0.8
Beta of Load Stock = 1.1

Determine which stock has higher risk-adjusted returns according to the Sharpe Index. Which stock has the higher risk-adjusted returns according to the Treynor Index?

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Finance Basics: Determine which stock has higher risk-adjusted returns

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Finance Basics: Determine which stock has higher risk-adjusted returns

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