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Over the long-term, which one of the following is a correct statement concerning risk premium(the additional return above the risk-free asset)? The risk premium does

Over the long-term, which one of the following is a correct statement concerning risk premium(the additional return above the risk-free asset)?

The risk premium does not affect the rate of return.

Stocks tend to have a higher risk premium than bonds.

The lower the rate of return, the greater the risk premium.

The lower the volatility of returns, the greater the risk premium.

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