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arsen [322]
3 years ago
5

The Risk Premium is:

Business
1 answer:
8_murik_8 [283]3 years ago
7 0

Answer:

The correct answer is letter "A": The difference between the expected YTM and the YTM of the comparable risk-free bond .

Explanation:

Risk Premium is a return that exceeds the risk-free rate of return that the investment is expected to yield. The risk premium for an asset takes the form of compensation for investors who tolerate the additional risk of an investment compared to the risk-free asset. In fact, investors expect to receive risk premiums because of the risk they are engaged in with certain investment instruments.

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