You expect equity market would provide a return of 12 and


You are an investor with a risk aversion coefficient of A = 4.

You expect equity market would provide a return of 12% and will have a standard deviation of 18%.

The risk free rate is 4%.

What would be the expected market risk premium based on your risk aversion score?

 

What would the percentage allocation of stocks and risk free asset considering your risk adverse coefficient of 4

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Financial Accounting: You expect equity market would provide a return of 12 and
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