Find the average rate of change illustrated in the graph.
-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 25 has a rate of return of
24.0%. What is the average rate of change in return per unit of risk? Round to two decimal places.
A) 0.83% per unit risk
B) 1.21% per unit risk
C) 1.10% per unit risk
D) 0.91% per unit risk

Question

Quizplus · Accepted Answer

The average rate of change is calculated as the change in return divided by the change in risk, which is (24.0% - 5.0%) / (25 - 2) = 19% / 23 = 0.826% per unit risk, rounded to two decimal places gives 0.83% per unit risk.

Find the Average Rate of Change Illustrated in the Graph