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11 December, 19:20

The difference between the required rate of return on a given risky investment and that on a riskless investment with the same expected return is the

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  1. 11 December, 22:01
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    The correct answer is risk premium.

    Explanation:

    Remember it with simple saying "With great risk there comes greater reward." Risk premium represents the extra return above the risk-free rate that an investor wants in order to be compensated for the risk. In other words, the riskier the investment, the higher the return the investor wants.
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