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Question 14 1 pts The market risk premium is computed as: (the average return for the market divided by the average return on long-term government
Question 14 1 pts The market risk premium is computed as: (the average return for the market divided by the average return on long-term government bonds plus the average return on US Treasury bills minus the inflation rate plus the inflation rate minus the average return on U.S. Treasury bills D Question 15 1 pts The principle of diversification tells us that: spreading an investment across many diverse assets will lower the risk for an investor, spreading an investment across five diverse terms will not reduce risk at all for an investor. spreading an investment across many diverse assets will eliminate all of a portfolio's risk. concentrating an investment in only large company stocks will eliminate risk for the investor concentrating an investment in only three forms that operate in the same industry will reduce risk for the lowestor
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