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a respected analyst forecasts that the return of the S&P500 index portfolio over rthe coming year will be 10%. The one year T-Bill rate is

a respected analyst forecasts that the return of the S&P500 index portfolio over rthe coming year will be 10%. The one year T-Bill rate is 5%. Examination of recent returns of the S&P500 index suggests that the standard deviation of returns will be 18%. What does this information suggest about the degree of risk aversion of the average investor. Assumingthat the average portfolio resembles the S&P?

A)A=2.05

B)A=3.09

C)A=3.8

D) A=5

E) Non of the above

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