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Question 17 According to the CAPM, market risk premium will be higher if I: investors' risk aversion increases II: the total volatility of the market

Question 17

According to the CAPM, market risk premium will be higher if

I: investors' risk aversion increases

II: the total volatility of the market portfolio increases

III: Insiders of many big firms receive some good information about future market returns.`

I III

I, II, and III

I and II

II

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