Which of the following is the best definition for the concept of risk premium?
A) The excess return required from an investment in a risky asset over a risk-free investment.
B) Market in which security prices reflect available information.
C) A symmetric, bell-shaped frequency distribution that can be defined by its mean and standard deviation.
D) The average compound return earned per year over a multi-year period.
E) The hypothesis is that actual capital markets are efficient.
Correct Answer:
Verified
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