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Consider the following factors: a) higher rates of inflation b) higher risk premiums c) lower rates of inflation d) lower dividend yields e) higher demand

Consider the following factors:

a) higher rates of inflation

b) higher risk premiums

c) lower rates of inflation

d) lower dividend yields

e) higher demand for risky assets by investors

f) lower risk-free rate

What effect each factor can be expected to have on required rates of return? Explain each answer.

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