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The risk premium is equal to which of the following:
Performance of Divisions
Evaluation of the efficiency, productivity, and profitability of different segments or units within an organization, often used for internal assessment and strategy formulation.
Residual Income
A profitability measure that subtracts an opportunity cost for capital from the profits generated.
Minimum Required Return
The minimum required return is the lowest acceptable profit or gain on an investment, factoring in the risk and opportunity cost.
Operating Income
Income generated from regular business operations, excluding costs of goods sold and other operating expenses.
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