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can i have an explanation of this question ? which formula are we using here? WhereTULUWU PUL QUOIUL DI 42. The risk premium on the

can i have an explanation of this question ? which formula are we using here?
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WhereTULUWU PUL QUOIUL DI 42. The risk premium on the market portfolio will be proportional to A) the average degree of risk aversion of the investor population. B) the risk of the market portfolio as measured by its variance. C) the risk of the market portfolio as measured by its beta D) both A and B are true E) both A and C are true. Answer: D Rationale: The risk premium on the market portfolio is proportional to the average degree ayrrsion of the investor population and the risk of the market portfolio measured by its variance

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