Question: Explainin few than two sentences whether the equilibrium risk premium will increase or decrease a)(5 points) During market turmoil Increase. b)(5 points) When the variance

Explainin few than two sentences whether the equilibrium risk premium will increase or decrease

a)(5 points) During market turmoil

Increase.

b)(5 points) When the variance of the market portfolio increases

Increase.

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

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