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Which of the Following Is True

Question 314

Multiple Choice

Which of the following is true?


A) Risky assets on average do not earn a risk premium.
B) There is a reward for bearing risk, on average.
C) On average, the greater the risk, the lower the reward.
D) When comparing the common stock of two firms, the riskier one will have the lower price.
E) If a market is not efficient, then all assets in that market will have the same reward to risk ratio.

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