Find the Average Rate of Change Illustrated in the Graph

question 225

Multiple Choice

Find the average rate of change illustrated in the graph.
-The rate of return of certain investments increases as the risk factor of the investment increases. An investment with a risk factor of 2 has a rate of return of 5.0%. An investment with a risk factor of 25 has a rate of return of
24.0%. What is the average rate of change in return per unit of risk? Round to two decimal places.

• A) 0.83% per unit risk
• B) 1.21% per unit risk
• C) 1.10% per unit risk
• D) 0.91% per unit risk

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