Suppose that the risk-free rate is 5%, the market volatility is 16% and the representative market risk-aversion (excess

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answerhappygod
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Suppose that the risk-free rate is 5%, the market volatility is 16% and the representative market risk-aversion (excess

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Suppose that the risk-free rate is 5%, the market volatility is
16% and the representative market risk-aversion (excess
return-to-variance) parameter A is equal to 3.91. What
would be the market return implied by this?
Question 10 options:
20%
15%
10%
12.5%
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