Question: From 1 9 2 7 to 2 0 2 1 , the passive risky portfolio offered an average risk premium of 8 . 8 7

From 1927 to 2021, the passive risky portfolio offered an average risk
premium of 8.87% with a standard deviation of 20.25%, resulting in a
reward-to-volatility ratio of .44
If 68% of net worth of a US investor is in risky assets, what is the average
degree of risk aversion of an US Investor?
 From 1927 to 2021, the passive risky portfolio offered an average

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!