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Suppose something happens to cause all investors to become much more risk averse. If this happens, the CAPM's Market Risk Premium will _______, stocks' required

Suppose something happens to cause all investors to become much more risk averse. If this happens, the CAPM's Market Risk Premium will _______, stocks' required returns will ______ and prices will _______.

Multiple Choice

  • rise, rise, rise

  • rise, fall, rise

  • fall, rise, fall

  • fall, fall, rise

  • rise, rise, fall

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