Kane, Marcus, and Trippi (1999) show that the annualized fee that investors should be willing to pay for active management, over and above the fee charged by a passive index fund, depends on I) the investor's coefficient of risk aversion.
II. the value of at-the-money call option on the market portfolio.
III. the value of out-of-the-money call option on the market portfolio.
IV. the precision of the security analyst.
V. the distribution of the squared information ratio of in the universe of securities.
A)I, II, and IV
B)I, III, and V
C)II, IV, and V
D)I, IV, and V
E)II, III, and V

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Kane, Marcus, and Trippi (1999) show that the annualized fee that investors should be willing to pay for active management, over and above the fee charged by a passive index fund, depends on I) the investor's coefficient of risk aversion.
II. the value of at-the-money call option on the market portfolio.
III. the value of out-of-the-money call option on the market portfolio.
IV. the precision of the security analyst.
V. the distribution of the squared information ratio of in the universe of securities.

Kane, Marcus, and Trippi (1999) Show That the Annualized Fee