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?