_____ refers to the added return required by investors for risk associated with a security or asset.

Question

Quizplus · Accepted Answer

A risk premium refers to the additional return required by investors for the risk associated with a security or asset. This is to compensate for the uncertainty and potential losses that may arise from investing in a risky asset. The higher the perceived risk, the higher the risk premium demanded by investors.

_____ Refers to the Added Return Required by Investors for Risk