A Risk-Free Investment of $50,000 Offers an Annual Return of 6

question 43

Multiple Choice

A risk-free investment of $50,000 offers an annual return of 6%. A risky investment of $50,000 has a 40% probability of default, in which case it will pay only $25,000.
-Refer to the information above. What default premium must the risky investment offer?

• A)43.3%
• B)33.3%
• C)37.3%
• D)52.0%

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Something that arises or appears unexpectedly or in the process of development or evolution.

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Specific targets focused on completing a task efficiently and effectively, often used to measure performance and productivity.

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