QUESTION 17 Recall that CAPM implies that the risk premium on market portfolio is equal to variance of the market portfolio multiplied by the risk aversion of the representative agent (A). Which of the following options is true about the risk aversion of the representative agent (A*). O A* is more influenced by the risk aversion of the wealthy agents in the economy. O A* is equally influenced by the risk aversion of all agents in the economy. O A* is more influenced by the risk aversion of the poorer agents in the economy. O A* is always equal to harmonic mean of the risk aversions of all agents in the economy. O None of the options are correct. O A* is always equal to arithmetic mean of the risk aversions of all agents in the economy