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    Fundamentals of Investments
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    Exam 2: Diversification and Risky Asset Allocation
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    All Else Constant, the Risk Premium on a Security Will
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All Else Constant, the Risk Premium on a Security Will

Question 8

Question 8

Multiple Choice

All else constant, the risk premium on a security will decrease when the I) security's expected return increases
II) security's expected return decreases
III) risk-free rate increases
IV) risk-free rate decreases


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

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