What Is the Risk Premium

question 18

Multiple Choice

What is the risk premium?

• A)The extra risk that compensates you for the additional amount of return you are taking with a particular security over a completely safe one.
• B)The extra return that compensates you for the additional amount of risk you are taking with a particular security over a completely safe one.
• C)The extra risk that compensates you for the additional amount of return you are taking with a particular security over the market return.
• D)The extra return that compensates you for the additional amount of risk you are taking with a particular security over the market risk.
• E)None of the above.

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Definitions:

Brain Activity

The functioning of the brain as indicated by psychological or neurological processes.

Positron Emission Tomography

A nuclear medicine functional imaging technique used to observe metabolic processes in the body as an aid to the diagnosis of disease.

Functional Magnetic Resonance Imaging

A neuroimaging technique that measures and maps brain activity based on changes in blood flow.

Brain Activity

The functionality of the brain as it engages in various cognitive, sensory, emotional, and motor tasks, often measured by neuroimaging techniques.