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As investors become more pessimistic (risk averse): Multiple Choice they require smaller premiums for taking risk. they require larger betas for taking risk. C prices
As investors become more pessimistic (risk averse): Multiple Choice they require smaller premiums for taking risk. they require larger betas for taking risk. C prices of securities fall in order to raise their expected rate of return. O they require smaller premiums for taking risk. O they require larger betas for taking risk. O ) O prices of securities fall in order to raise their expected rate of return. O they invest in a portfolio with a high beta
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