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06-01-2020
Business

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The difference between the required rate of return on a given risky investment and that on a riskless investment with the same expected return is the

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khaqanelahi khaqanelahi

07-01-2020

Answer:

The correct answer is risk premium.

Explanation:

Remember it with simple saying "With great risk there comes greater reward." Risk premium represents the extra return above the risk-free rate that an investor wants in order to be compensated for the risk. In other words, the riskier the investment, the higher the return the investor wants.

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