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Historical average ER and SD of S&P500 over the last eight decades are 7.9% and 23.2% (a) To the extent that these average approximated investor

Historical average ER and SD of S&P500 over the last eight decades are 7.9% and 23.2% (a) To the extent that these average approximated investor expectations for the period, what must have been the average coefficient of risk aversion? (b) If the coefficient of risk aversion were actually 3.5, what risk premium would have been consistent with the market's historical SD

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