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Problem:

The expected rate of return on the market portfolio is 9.75% and the risk-free rate of return is 1.75%. The standard deviation of the market portfolio is 19%.

Required:

Question: What is the representative investor's average degree of risk aversion?

Note: Be sure to show how you arrived at your answer.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91163459

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