Which of the following countries has had the lowest risk premium?
A)United States
B)Denmark
C)Italy
D)Germany

Question

Quizplus · Accepted Answer

The risk premium is the extra return required by investors to invest in a risky asset instead of a risk-free asset. Denmark has had historically low levels of risk premium due to its stable economy and fiscal policies, making it an attractive destination for investment with low risk. In contrast, Italy has had higher levels of risk premium due to its volatile economy and high levels of debt, while Germany and the United States have had moderate levels of risk premium. Therefore, the best choice is B) Denmark.

Which of the Following Countries Has Had the Lowest Risk