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Generally, the change in the risk aversion level of investors is likely to affect the required rate of return on a stock. The increase in

Generally, the change in the risk aversion level of investors is likely to affect the required rate of return on a stock. The increase in in the risk aversion level will likely have a positive impact on the stock's price.

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Yields on longer term bonds usually are greater than on shorter term bonds, so the maturity risk premium is more affected by interest rate risk than by reinvestment rate risk.

True

False

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