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-Suppose a risky security pays an average cash flow of $100 in one year.The risk-free rate is 5%,and the expected return on the market index is 13%.If the returns on this security are high when the economy is strong and low when the economy is weak,but the returns vary by only half as much as the market index,what risk premium is appropriate for this security?
Vibrating
A process or state characterized by rapid oscillations or movements back and forth or up and down, often at a relatively fixed frequency.
Resistance Start Induction-run Motor
A type of single-phase induction motor that uses an external resistor to increase starting torque, which is removed once the motor reaches a certain speed.
Start Winding
The winding of a split-phase motor that is connected out of phase with the run winding to produce a rotating magnetic field.
Centrifugal Switch
A switch sensitive to the speed of rotation, generally used to disconnect the start windings of a split-phase motor.
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