A leading analyst has forecast the return on the market index over the coming year will be 10% Additional information: - The standard deviation of the market in recent years been unaltered at 18%, and is expected to remain constant for the foreseeable future. - The risk-free rate (T-bill rate) is 2% per annum. REQUIRED: (Show all answers correct to 2 decimal places.] a. What is the degree of risk aversion (commonly known as A) for an investor in the market index? b. What would the standard deviation (expressed as a percentage) of the market be in the coming yea the degree of risk aversion in the market index were 2%? c. What are the Sharpe ratios for the market index in situations a, and b. above, respectively? A B 1 IN III %3 PA U S x x # 3 > I search o 20 AR Chip 40