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Which is true when news comes out

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Reference no: EM132969411

Problem 1: News comes out that the CEO of Acme Inc was killed in a car accident. Assume there is no other significant economic news on this day. Which is true:

A. The risk premium for Acme stock will go up.

B. The risk premium for Acme stock will go down.

C. There will no change to the risk premium for Acme stock.

Reference no: EM132969411

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