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Question 2 (1 point) Over the past 75 years, which one of the following had the largest risk premium? 1) Small-company stocks 2) U.S. Treasury
Question 2 (1 point) Over the past 75 years, which one of the following had the largest risk premium? 1) Small-company stocks 2) U.S. Treasury bills 3) Large-company stocks 4) Long-term corporate bonds Question 3 (1 point) Saved Assume the securities markets are strong form efficient. Given this assumption, you should expect which one of the following to occur? 1 Each security in the market will have an annual rate of return equal to the risk-free rate. 2) The risk premium on any security in that market will be zero. 3) The price of any one security in that market will remain constant at its current level. 4) The price of each security in that market will incorporate public and privately available information
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