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
12) 0%. What is the average rate of return per unit of risk?
A) 3.14% per unit risk
B) 1.90% per unit risk
C) 0.53% per unit risk
D) 0.32% per unit risk
Correct Answer:
Verified
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