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Which of the following is most likely an incorrect statement? The risk premium is typically positive for risky assets. The risk-return trade-off implies that a
Which of the following is most likely an incorrect statement?
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.
We can measure the risk of a single asset or portfolio by measuring the standard deviation of its return distribution.
The risk premium is calculated as the expected rate of return on an asset minus the risk free rate.
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