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    Contemporary Financial Management Study Set 2
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    Exam 9: Analysis of Risk and Return
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    Common Stockholders Require a Higher Rate of Return Than Do
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Common Stockholders Require a Higher Rate of Return Than Do

Question 73

Question 73

Multiple Choice

Common stockholders require a higher rate of return than do holders of Aaa-rated bonds. This reflects which type of risk premium?


A) maturity
B) default
C) seniority
D) marketability

Correct Answer:

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