A Liquidity-Risk Premium Is the Additional Return Required by Investors

question 37

True/False

A liquidity-risk premium is the additional return required by investors for securities that cannot quickly be converted into cash at a reasonably predictable price.

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Definitions:

Clarification

The process of seeking or providing explanation or additional information to make something clear or understandable.

Vague Explanations

Descriptions or reasons that are unclear, imprecise, and lacking in detail.

Clarification

The process of clarifying a statement or situation to make it easier to understand.

Explicit

Something stated clearly and in detail, leaving no room for confusion or doubt.