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16) Assume that an investor is offered a choice of a risk-free security that is expected to return 4.5% or a very high-risk corporate stock.

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16) Assume that an investor is offered a choice of a risk-free security that is expected to return 4.5% or a very high-risk corporate stock. What would induce the investor to purchase the corporate stock? A) a return that is substantially lower than 4.5% B) a return of 45% C) a return of 4.5% D) $1.5 cash dividends E) tax exemption

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