Risk Premium Is

question 6

Multiple Choice

Risk premium is:

• A)A payment differential necessary to compensate the investor for having to bear a risk
• B)The additional payment paid by bonds issued by the federal government
• C)The tendency of some investors to incur in high risk
• D)The benefits of buying from a trustworthy institution

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Definitions:

GAAP

Generally Accepted Accounting Principles, a set of rules encompassing the details, complexities, and legalities of business and corporate accounting.

IFRS

International Financial Reporting Standards, a set of accounting standards globally accepted for financial reporting.

Standard of Care

The level of care and caution expected from someone who has a responsibility to act carefully.

Distributor's Liability

Legal accountability faced by distributors for selling or distributing defective products that cause harm or loss to the purchasers.