The Variance of the Return on the Market Portfolio Is

question 63

Multiple Choice

The variance of the return on the market portfolio is .0400 and the expected return on the market portfolio is 20%.If the risk-free rate of return is 10%,the market degree of risk aversion,A,is _________.

• A) 0.5
• B) 2.5
• C) 3.5
• D) 5.0

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Definitions:

Motors

Machines that convert electrical energy into mechanical energy, commonly used for driving machinery.

Three-Phase Motor

An electric motor designed to operate on a three-phase alternating current supply, providing high efficiency and a smooth flow of power.

Lines

Refers to conductors that carry electrical power from one location to another, often used in the context of power transmission and distribution networks.

Consequent Pole Motor

A type of electric motor that achieves higher torque by varying the relationships between magnetic poles.