Question: 1. Explain why you agree or disagree with this statement: Most investors are risk-averse. 2. How does risk aversion affect required rates of return? 3.

1. Explain why you agree or disagree with this statement: Most investors are risk-averse. 2. How does risk aversion affect required rates of return? 3. How do higher required rates of return affect capital asset pricing, holding everything else constant

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