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Advanced Business Economics
?
A risk premium measures the:
extra rate of return a risky project must earn to make its riskiness acceptable.
increase in the discount rate necessary for discounting risky costs and benefits over time.
level of extra benefits a risky project must earn to make its riskiness acceptable.
excess of expected benefits over their certainty equivalent.
Show Result
Correct
- Your answer is correct.
Wrong
- Your answer is wrong.
Detailed Answer
Correct answer: (A)
extra rate of return a risky project must earn to make its riskiness acceptable.
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