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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asked May 19, 2021 51.9k views

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Hosein Basafa · Answer 1 · 2021-05-26T04:06:53+0000

Answer:

The correct answer is risk premium.

Step-by-step 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.

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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