Many Financial Managers Use Market Risk Premiums That Are Closer

question 65

Multiple Choice

Many financial managers use market risk premiums that are closer to 5%,which is lower than historical averages,because investors require a ________ risk premium for holding risky securities than in the past.

• A)lower
• B)higher
• C)similar
• D)specific
• E)consistent

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Definitions:

Puberty

A developmental stage during which a child's body matures into an adult body capable of sexual reproduction.

Perineum

The region of the body between the anus and the genitals, present in both males and females.

Peritoneum

A membrane that lines the abdominal cavity and covers most of the abdominal organs, playing a role in their support and protection.

Areola

A ring of darkened skin around the nipple of the breast.