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All Other Factors Held Constant, an Investment

Question 3

Multiple Choice

All other factors held constant, an investment:


A) with more risk should offer a lower return and sell for a higher price.
B) with less risk should sell for a lower price and offer a higher expected return.
C) with more risk should sell for a lower price and offer a higher expected return.
D) with less risk should sell for a lower price and offer a lower return.

Correct Answer:

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