The one year t-bill rate is 5 examination of recent returns


A respected analyst forecasts that the return of the S&P500 index portfolio over rthe coming year will be 10%.

The one year T-Bill rate is 5%. Examination of recent returns of the S&P500 index suggests that the standard deviation of returns will be 18%.

What does this information suggest about the degree of risk aversion of the average investor.

Assumingthat the average portfolio resembles the S&P?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: The one year t-bill rate is 5 examination of recent returns
Reference No:- TGS02865854

Expected delivery within 24 Hours