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Which of the following is most likely a correct statement? We measure the risk of a single asset or portfolio by measuring the alpha of

Which of the following is most likely a correct statement?

We measure the risk of a single asset or portfolio by measuring the alpha of its return distribution.

The risk premium is calculated as the risk free rate minus the expected rate of return on an asset.

The risk premium is typically positive for risky assets.

The risk-return trade-off implies that a higher expected return goes hand-in-hand with lower risk.

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