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QUESTION 1 All risk that stockholders bear should be compensated with higher expectations for returns True False. Only firm risk compensates through higher expected returns

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QUESTION 1 All risk that stockholders bear should be compensated with higher expectations for returns True False. Only firm risk compensates through higher expected returns False. Only market risk compensates through higher expected returns False. Only interest rate risk compensates through higher expected returns QUESTION 2 For the majority of stocks what percentage of their returns fall between 1 and 2 standard deviations away from their average return? About 13.5% O Greater than 27% Less than 27% About equal to 27%

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