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Calculate the risk premium after the price changes

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Reference no: EM132948253

Question - You have freshly received information regarding the following two Securities ABC and XYZ: (Refer image) Investors in the market, being risk averse, started selling the securities with high CV values and started buying securities with low CV values. As a result, the price of high CV value security fell by 50% while that of low CV security increased by 50%. Calculate the risk premium after the price changes?

A. 4%

B. 8%

C. 20%

D. 12%

Reference no: EM132948253

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