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e 285 You own three securities. Security A has an expected return of 11% as compared to 14%. for Security B and 9% for Security
e 285 You own three securities. Security A has an expected return of 11% as compared to 14%. for Security B and 9% for Security C. The expected inflation rate is 4% and the nominal risk-free rate is 5% which one of the following statements is correct? Select one a. The risk premium on Security C is 5% b. All three securities have the same expected risk premium c. Security B has a risk premium that is 50% greater than Security A's risk premium d. There is no risk premium on Security C e. The risk premium on Security A exceeds that of Secunty B
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