What the rate of return rational investor to investor would

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Problem 1: A covariant of return with the market is 17%. ABC and the market have a variance of return of 4% and 13% respectively. If the risk rate is 3% and expected return is 10% , the rate of return a rational investor to investor would demand from A closest too:

a. 11.2%

b. 11.8%

c. 12.1%

d. 13.2%

Reference no: EM132757327

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