What is the representative investor average degree of risk

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Question - The expected rate of return on the market portfolio is 12.50% and the risk-free rate of return is 3.25%. The standard deviation of the market portfolio is 17.50%. What is the representative investor's average degree of risk aversion? Note that the degree of risk aversion is shown as a number rather than a percentage. Enter your answer rounded to two decimal places.

Reference no: EM132847791

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