> Moving to the next question prevents changes to this answer. Question 9 Which

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> Moving to the next question prevents changes to this answer. Question 9 Which one of the following statements is correct? OA If a risky security is correctly priced, its expected risk premium will be positive B. The risk premium on a risk-free security is generally considered to be one percent c The expected rate of return on any security, given multiple states of the economy, must be positive ? D. There is an inverse relationship between the level of risk and the risk premium given a risky security. E. If a risky security is priced correctly. it will have an expected retum equal to the risk-free rate Moving to the next question prevents changes to this answer

Explanation / Answer

Answer is option (A). If a risky security is correctly priced, its expected risk premium will be positive.

Explanation;

As we know that when a risky security priced correctly then expected risk premium will be positive. Thus option (A) is correct answer whereas other options are incorrect.

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