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(1)) Which of the following is NOT one of the fundamental principles determining the size of the risk premium for stocks? a) Risk premiums will

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(1)) Which of the following is NOT one of the fundamental principles determining the size of the risk premium for stocks? a) Risk premiums will be large in economies that have more volatility associated with them. b) Risk premiums will be larger in those markets where there is a potential risk of political instability. c) Risk premiums will be larger in those markets where consumers have higher propensities for current consumption. d) Risk premiums will be smaller in those markets because the companies that are listed on the exchange are large, diversified and stable. e) None of the above

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