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2. Which of the following statements is CORRECT? a. If the maturity risk premium (MRP) is greater than zero, the Treasury bon
3. Ms Parker found two opportunities of investment A (rate of return 4%, standard deviation 4%) and investment B (rate of ret
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2. Option ,e. If inflation is expected to increase in the future, and if the maturity risk premium (MRP) is greater than zero, then the Treasury yield curve will have an upward slope.

3. Option b, B ( reason ;the rate of return is higher and the standard deviation is also lower)

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