The equilibrium risk-return relationship for a risk-averse individual shows
A) a relationship between risk and expected rate of return which is first positive and then negative.
B) no relationship between risk and expected rate of return.
C) a relationship between risk and expected rate of return which is first negative and then positive.
D) a negative relationship between risk and expected rate of return.
E) a positive relationship between risk and expected rate of return.
Correct Answer:
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