Question: Explain in few than two sentences whether the equilibrium risk premium will increase or decrease (5 points) During market turmoil (5 points) When the variance

  1. Explain in few than two sentences whether the equilibrium risk premium will increase or decrease
    1. (5 points) During market turmoil

  1. (5 points) When the variance of the market portfolio increases

  1. (5 points) When the risk aversion of the average investor increases

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