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Laura Martin is a respected analyst in the market. She expects that the rate of return on the market portfolio will be 18% next year.
Laura Martin is a respected analyst in the market. She expects that the rate of return on the market portfolio will be 18% next year. Treasury bills will return 7%. Historical observations suggest that the standard deviation of the market return will be 25%. According to this information, what is the degree of risk aversion of the average investor? a. 7% b. 25% c. 1.44 d. 11% e. 3.52 f. 5.76 g. 88% h. 4.12
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