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Suppose an investor is considering one of two investments that are identical in all respects except for risk. If the investor anticipates a fair return
Suppose an investor is considering one of two investments that are identical in all respects except for risk. If the investor anticipates a fair return for the risk of the security he invests in he can expect to
Question options:
A
pay less for the security that has lower risk.
B
earn more if interest rates are lower.
C
pay less for the security that has higher risk.
D
earn no more than the Treasurybill rate on either security.
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