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Which of the following statement is TRUE? Risk free rate represents compensation for just waiting;...

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Finance

Which of the following statement is TRUE?

Risk free rate represents compensation for just waiting; this is often called the time value of money.

Dollar-weighted average return is an appropriate measure of return for all types of investment.

Risk tolerance is only affected by investor's ability to take on risk

Advice that you receive from investment brokers are always guaranteed.

Risk premium of a risk-free asset is 1.5%

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