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
Correct Answer:

Verified
Correct Answer:
Verified
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