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What Is the Risk Premium

Question 9

Multiple Choice

What is the risk premium?


A) The extra risk that compensates you for the additional amount of return you are taking with a particular security over a completely safe one.
B) The extra return that compensates you for the additional amount of risk you are taking with a particular security over a completely safe one.
C) The extra risk that compensates you for the additional amount of return you are taking with a particular security over the market return.
D) The extra return that compensates you for the additional amount of risk you are taking with a particular security over the market risk.
E) None of the above.

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