The excess return of the market over the risk-free rate is


1. Derive a relationship between the convenience yield of a commodity and its market price of risk.

2. The correlation between a company's gross revenue and the market index is 0.2. The excess return of the market over the risk-free rate is 6% and the volatility of the market index is 18%. What is the market price of risk for the company's revenue?

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Financial Management: The excess return of the market over the risk-free rate is
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