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Which of the following statements are TRUE? The expected return on an investment includes compensation for both the time value of money and the risks
Which of the following statements are TRUE?
The expected return on an investment includes compensation for both the time value of money and the risks assumed. | ||
Market risk can be eliminated in an equity portfolio through diversification. | ||
Macro or market risks are faced by all equity investors. | ||
The risk that remains in a well-diversified equity portfolio is known as unique or specific risk. | ||
The market risk premium is estimated as the difference between the expected return on a broad market index and the risk-free interest rate. |
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