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Investors will pay a premium to invest in risky assets. True False QUESTION 6 Opportunity cost forms the basis for investor expectations in what sense?
Investors will pay a premium to invest in risky assets. True False QUESTION 6 Opportunity cost forms the basis for investor expectations in what sense? Expected returns from investments must at least equal the returns of the next best alternative investment. Investors are risk averse and will seek safe assets. Financial risk is not acceptable to most investors. Investing must take into account the intrinsic value of the asset
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