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B) During a Finance lecture, Professor Jerry explained to her students the relation between higher risks and higher returns. At the end of the lecture

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B) During a Finance lecture, Professor Jerry explained to her students the relation between higher risks and higher returns. At the end of the lecture one of the students asked: 'Yesterday, I read in the papers that the United States stock markets earned higher returns than African stock markets. How is that fact consistent with higher risks equalling higher returns?' How would you expect Professor Jerry to explain to her students

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