FIN 534 RANK Imagine Your Future /fin534rank.com FIN 534 RANK Imagine Your Future /fin534rank.com | Page 96

Question 5
Which of the following statements is CORRECT? (Assume that
the risk-free rate is a constant.)
Correct Answer:
Question 6
During the coming year, the market risk premium (rM − rRF), is
expected to fall, while the risk-free rate, rRF, is expected to remain the
same. Given this forecast, which of the following statements is
CORRECT?
Correct Answer:
Question 7
2 out of 2 points