Question

What is a risk premium?

Multiple choice question.

It is a numerical estimate of beta.


It is the return on risk-free securities.


It is additional compensation for taking risk, over and above the risk-free rate.


It is a fee charged to investors by the SEC that allows them to invest in risky securities.
GPT-4o mini
The correct answer is:

**It is additional compensation for taking risk, over and above the risk-free rate.**

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