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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.
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