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Answer and explain these question. Thanks 1. Which of the following is correct? For a given expected cash flow, a. portfolios that command greater risk
Answer and explain these question. Thanks
1. Which of the following is correct? For a given expected cash flow, a. portfolios that command greater risk premiums must sell at higher prices. b. portfolios that command greater risk premiums must sell at lower prices c. portfolios that command smaller risk premiums must sell at lower prices d. None of the above 2. Which of the following is correct? (Assuming an unchanged risk aversion) If investors perceive an increase in the volatility of stocks, ? a. they will demand a higher risk premium to hold the same portfolio they held before b. they will demand a lower risk premium to hold the same portfolio they held before c. they will demand an equal risk premium to hold the same portfolio they held before d. None of the above Step by Step Solution
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