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Which of the Following Will Increase the Expected Risk Premium

Question 39

Multiple Choice

Which of the following will increase the expected risk premium for a security, all else constant?
I. an increase in the security's expected return
II. a decrease in the security's expected return
III. an increase in the risk-free rate
IV. a decrease in the risk-free rate


A) I only
B) III only
C) IV only
D) I and IV only
E) II and III only

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