Which of These Is the 'Risk Premium

question 2

Multiple Choice

Which of these is the 'risk premium'?

• A)The proportion of return required by an investor on a risky security over and above the market rate of return
• B)The proportion of return required by an investor on a risky security over and above the rate of return on equity
• C)The proportion of return required by an investor on a risky security over and above the risk- free rate of return
• D)The proportion of return required by an investor on a risky security over and above the dividend rate of return