Suppose that the risk-free rate is 5%, the market volatility is 16% and the representative market risk-aversion (excess
Posted: Wed Mar 09, 2022 8:41 am
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%
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%