Marys coefficient of risk aversion A is 1. This means that

		For each unit of volatility, Mary requires an expected return equal to 100%.
		For each unit of variance, Mary requires an expected return equal to 100%.
		For each unit of volatility, Mary requires a risk premium equal to 100%.
		For each unit of variance, Mary requires a risk premium return equal to 100%.

Which of the following statements is true?

		A risk averse investor will never take highly risky investments.
		A risk neutral investor prefers investments with lower risk, all else equal.
		A risk loving investor prefers investments with lower risk, all else equal.
		More risk averse investors require higher compensation for taking risk.

Annual percentage rates can be converted to effective annual rates by means of the following formula:

		[1 + (APR/ n)] n - 1
		(APR)( n)
		(APR/ n)
		(periodic rate)( n)