What does this information suggest about the degree of risk


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. Assuming that the average portfolio resembles the S&P? A)A=2.05 B)A=3.09 C)A=3.8 D) A=5 E) Non of the above

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Financial Management: What does this information suggest about the degree of risk
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