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Author Question: The market risk premium remains constant over time because the risk-free rate of return moves ... (Read 87 times)

faduma

  • Hero Member
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  • Posts: 528
on: Jul 10, 2018
The market risk premium remains constant over time because the risk-free rate of return moves
  inversely with beta.
 
  Indicate whether the statement is true or false

Question 2

A reasonable estimate of the market risk premium based on historical data and expert opinion is
  between 5 and 7.
 
  Indicate whether the statement is true or false
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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ghepp

  • Sr. Member
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Reply #1 on: Jul 10, 2018
Answer to Question 1

FALSE

Answer to Question 2

TRUE


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