The difference between the rate of return on debt issued by the government and the rate of return on equity capital is referred to as a risk premium.

Name: The difference between the rate of return on debt issued by the government and the rate of return on equity capital is referred to as a risk premium.
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The risk premium is the additional return expected by investors for taking on the higher risk associated with equity investments compared to the relatively safer government debt.

The Difference Between the Rate of Return on Debt Issued