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If enough investors decide to purchase stocks, they are likely to drive up stock prices, thereby causing _____________ and ___________. 1) expected returns to fall;

If enough investors decide to purchase stocks, they are likely to drive up stock prices, thereby causing _____________ and ___________.

1) expected returns to fall; risk premiums to fall

2) expected returns to rise; risk premiums to fall

3) expected returns to rise; risk premiums to rise

4) expected returns to fall; risk premiums to rise

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