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Solve the Problem 5.0%5.0 \% an Investment with a Risk Factor of 25 Has

Question 121

Multiple Choice

Solve the problem. Round your answer, as needed.
-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%5.0 \% . An investment with a risk factor of 25 has a rate of return of 15.0%15.0 \% . What is the average rate of return per unit of risk?


A) 0.43%0.43 \% per unit risk
B) 2.30%2.30 \% per unit risk
C) 0.65%0.65 \% per unit risk
D) 1.54%1.54 \% per unit risk

Correct Answer:

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