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Solve the Problem 5.0%5.0 \% an Investment with a Risk Factor of 13 Has

Question 95

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%5.0 \% . An investment with a risk factor of 13 has a rate of return of 14.0%14.0 \% . What is the average rate of return per unit of risk?


A) 0.67%0.67 \% per unit risk
B) 1.22%1.22 \% per unit risk
C) 0.82%0.82 \% per unit risk
D) 1.50%1.50 \% per unit risk

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