Solved

Solve the Problem. -The Rate of Return of Certain Investments Increases as the Increases

Question 357

Multiple Choice

Solve the problem.
-The rate of return of certain investments increases as the risk factor of the investment increases. An investment with a risk factor of 2 has a rate of return of 5.0%. An investment with a risk factor of
24 has a rate of return of 25.0%. What is the average rate of change in return per unit of risk?
Round to two decimal places.


A) 1.10% per unit risk
B) 0.83% per unit risk
C) 1.21% per unit risk
D) 0.91% per unit risk

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions