Question
If the risk-free rate is 5%, the average risk aversion is 2, and the standard deviation of the market portfolio M is 20%. According to
If the risk-free rate is 5%, the average risk aversion is 2, and the standard deviation of the market portfolio M is 20%. According to the CAPM model, what is the expected market risk premium?
| 10% | ||
| 9% | ||
| 8% | ||
| 7% |
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Public Finance In A Changing World
Authors: Peter Birch Sorensen
1998th Edition
0333682211, 978-0333682210
