The risk premium on the market portfolio will be proportional to
A) the average degree of risk aversion of the investor population..
B) the risk of the market portfolio as measured by its variance.
C) The risk of the market portfolio as measured by its beta.
D) the average degree of risk aversion of the investor population and the risk of the market portfolio as.
E) The average degree of risk aversion of the investor population and the risk of the market portfolio as.
Correct Answer:
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