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According to market risk premium an amount of risk premium depends...

This question belongs to Commerce Financial Management
Financial Management
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According to market risk premium, an amount of risk premium depends upon investor

Answer & Solution
Correct Answer: Option B
According to market risk premium, an amount of risk premium depends upon investor risk aversion. The term risk-averse refers to investors who, when faced with two investments with a similar expected return, prefer the lower-risk option.
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