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    Financial Management Theory and Practice Study Set 3
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    Exam 7: Risk, Return, and the Capital Asset Pricing Model
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    As Investors Become ____ Risk Averse, the Market Risk Premium
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As Investors Become ____ Risk Averse, the Market Risk Premium

Question 64

Question 64

Multiple Choice

As investors become ____ risk averse, the market risk premium ____ and SML becomes ____.


A) More, increases, steeper.
B) More, decreases, flatter
C) Less, increases, flatter.
D) Less, decreases, steeper.

Correct Answer:

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