Question: [ 9 - 1 0 ] Suppose that the risk - free rate, , is 5 % ; the expected return to an investor s

[9-10] Suppose that the risk-free rate, , is 5%; the expected return to an investors tangency portfolio
E() is 15%; and the standard deviation of the tangency portfolio is 25%.
9. How much return does this investor demand in order to take on an extra unit of risk?

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