Which of the Following Is False About the Expected Risk

question 77

Multiple Choice

Which of the following is false about the expected risk premium of an asset?

• A) The expected risk premium is always positive.
• B) The risk premium is the expected return of a risky asset minus the risk-free rate.
• C) The expected risk premium is the reward for bearing risk.
• D) The risk-free asset has no risk premium.
• E) All of the above are true.

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