The risk premium would be greater for an investment in an oil and gas
The risk premium would be greater for an investment in an oil and gas exploration in unproven
fields than an investment in preferred stock because
A) the preferred stock is more liquid.
B) oil and gas exploration investments have a greater variability in possible returns.
C) the inflation rate would vary more with oil and gas exploration investments.
D) both A and B
ANSWER
D
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