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Discuss Why Common Stocks Must Earn a Risk Premium

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Discuss why common stocks must earn a risk premium.


Definitions:

Ethylene

Plant hormone that causes ripening of fruit and is also involved in abscission.

Abscisic Acid

A plant hormone that regulates growth and development, as well as stress responses such as closing stomata during drought conditions.

Auxin

A class of plant hormones that regulate aspects of growth and development, such as cell elongation.

Long-Day Plant

Plant that flowers when day length is longer than a critical length; e.g., wheat, barley, clover, and spinach.

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