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The simplest view on the stock market is based on the relationship between risk and return. Based on this simple market model, Group of answer

The simplest view on the stock market is based on the relationship between risk and return.

Based on this simple "market model,"

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stocks with lower risks should earn higher returns.

all stocks should earn the same return regardless of risk.

stocks with higher risks should earn higher returns.

investors should not care about risks associated with specific stocks, just how well the company's CEO is educated.

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