An increase in the riskiness of a particular security would NOT affect
A) the risk premium for that security.
B) the premium for expected inflation.
C) the total required return for the security.
D) investors' willingness to buy the security.

Question

Quizplus · Accepted Answer

An increase in the riskiness of a particular security would not affect the premium for expected inflation, as inflation is not directly related to the risk of a security. However, it would affect the risk premium for that security, the total required return for the security, and investors' willingness to buy the security.

An Increase in the Riskiness of a Particular Security Would