Kane, Marcus, and Trippi $(1999)$ show that the annualized fee that investors should be willing to pay for active ma

and above the fee charged by a passive index fund, depends on

I$)$ the investor's coefficient of risk aversion.

II$)$ the value of the at$-$the$-$money call option on the market portfolio.

III$)$ the value of the out$-$of$-$the$-$money call option on the market portfolio.

IV$)$ the precision of the security analyst.

$V)$ the distribution of the squared information ratio in the universe of securities$.$

I, IV$,$ and V

II$,$ IV$,$ and V

I, III, and V

II$,$ III, and V

I, II$,$ and IV