Multiple Choice
Which one of the following statements is correct?
A) The greater the volatility of returns, the greater the risk premium.
B) The lower the volatility of returns, the greater the risk premium.
C) The lower the average return, the greater the risk premium.
D) The risk premium is unrelated to the average rate of return.
E) The risk premium is not affected by the volatility of returns.
Correct Answer:
Verified
Correct Answer:
Verified
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