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Explain with the help of a graph that financial instruments (bonds) with same perceived risk levels yet initially different yields (returns) tend to move to
Explain with the help of a graph that financial instruments (bonds) with same perceived risk levels yet initially different yields (returns) tend to move to same risk/yield combination through price adjustments (forming a market line for financial instruments for their risk return levels).
Please answer it by using the Microeconomics concepts. Thanks
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