Question 26 Which statements are true? I: Risk premium measures whether a risky...

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Finance

Question 26

  1. Which statements are true?

    I: Risk premium measures whether a risky asset is expected to generate a higher return than the risk free asset

    II: High risk always comes with high expected return regardless of what types of risk

    III: In the CAPM world, high beta risk, high expected return

    IV: In the CAPM world, negative beta assets are still risky but their expected return can be lower than risk free rate.

    I,II,III

    I, III,IV

    I,II,III,IV

    III

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