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How much market risk premium should be awarded to them in order to induce them to hold shares? In the world of CAPM, suppose the
How much market risk premium should be awarded to them in order to induce them to hold shares?
In the world of CAPM, suppose the average investors are risk averse with a risk aversion parameter of 3.25. How much market risk premium should be awarded to them in order to induce them to hold shares? Assume the risk free rate is 0.34%. The standard deviation of the market portfolio is 23.45%. 0.1368 O 0.1852 O 0.1452 O 0.1787 0.3374 O 0.0968 0.3340 O 0.1821 ty PO MacBook Pro Step by Step Solution
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