Liquidity premiuma accounts for the fact that longer-term, Ask an Expert

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Liquidity Premium

A. accounts for the fact that longer-term bonds experience greater price reaction to interest rate changes than short term bonds

B. ability to convert as asset into cash on short notice and reasonably capture the amount initially invested

C. financial assets have lower liquidity premiums than real assets

D. is a component of the quoted risk-free rate of return.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91781424

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