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    Investments Analysis and Management Study Set 2
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    Exam 6: The Risk and Return From Investing
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    Holding Interest Rates Constant, a Narrowing of the Equity Risk
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Holding Interest Rates Constant, a Narrowing of the Equity Risk

Question 20

Question 20

True/False

Holding interest rates constant, a narrowing of the equity risk premium implies a decline in the return on stocks because the amount earned beyond the risk-free rate is reduced.

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