Matching
Match the following:
Premises:
Risk premium
Responses:
The observation that investors always choose less risky stocks when expected returns are equal.
The reward for bearing market risk
Risk associated with a specific industry or firm
Risk associated with inflation, interest rates, recession, etc., things that tend to affect all stocks.
Correct Answer:
Premises:
Responses:
The observation that investors always choose less risky stocks when expected returns are equal.
The reward for bearing market risk
Risk associated with a specific industry or firm
Risk associated with inflation, interest rates, recession, etc., things that tend to affect all stocks.
Premises:
The observation that investors always choose less risky stocks when expected returns are equal.
The reward for bearing market risk
Risk associated with a specific industry or firm
Risk associated with inflation, interest rates, recession, etc., things that tend to affect all stocks.
Responses:
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