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7. Which of the following is correct? A) Higher volatility of interest rates should increase the risk of bonds but not stocks B) Higher risk

7. Which of the following is correct? A) Higher volatility of interest rates should increase the risk of bonds but not stocks B) Higher risk aversion would cause the stock prices to fall because investors require higher compensation for risk C) Higher risk aversion should not have any impact on the price of a CCC bond D) Higher bond market illiquidity should push the prices of bonds up

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