The risk premium on the market portfolio will be proportional to _____________ I. the average degree of risk aversion of the investor population. II. the risk of the market portfolio as measured by its variance. III. the risk of the market portfolio as measured by its beta. Group of answer choices a. I only b. II only c. III only d. I and II e. I and III
The risk premium on the market portfolio will be proportional to _____________ I. the average degree of risk aversion of the investor population. II. the risk of the market portfolio as measured by its variance. III. the risk of the market portfolio as measured by its beta. Group of answer choices a. I only b. II only c. III only d. I and II e. I and III
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 13QTD
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Question
The risk premium on the market portfolio will be proportional to _____________
I. the average degree of risk aversion of the investor population.
II. the risk of the market portfolio as measured by its variance.
III. the risk of the market portfolio as measured by its beta.
Group of answer choices
a. I only
b. II only
c. III only
d. I and II
e. I and III
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