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Which of These Is the 'Risk Premium

Question 15

Multiple Choice

Which of these is the 'risk premium'?


A) The proportion of return required by an investor on a risky security over and above the market rate of return
B) The proportion of return required by an investor on a risky security over and above the rate of return on equity
C) The proportion of return required by an investor on a risky security over and above the risk- free rate of return
D) The proportion of return required by an investor on a risky security over and above the dividend rate of return

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