Greater the volatility of returns-the greater risk premium

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Reference no: EM131020670

Which one of the following statements is correct? "The greater the volatility of returns, the greater the risk premium" The risk premium is unrelated to the average rate of return "The lower the average return, the greater the risk premium." The risk premium is not affected by the volatility of returns "The lower the volatility of returns, the greater the risk premium"

Reference no: EM131020670

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