Start learning →

The extra return earned for taking on risk, over what a riskless investment would pay, is the risk:

APenalty
BProvision
CRebate
DPremium
Answer & Solution
Correct answer: D. Premium
1. It is a difference between two returns. 2. One of them involves no risk. 3. It is the risk premium. _Source: OpenStax Principles of Finance 2e, Chapter 15, How to Think about Investing._
Practise this question with Quill — Canadian Securities Course (CSC) →

Keep practising Risk and Return

Browse all Risk and Return questions for Canadian Securities Course (CSC), or explore more Investments topics.

Start a Risk and Return lesson →
Related questions
Risk and return bingoType the numberSort the investing wordsDiversifiable or notSlice the investing wordsRun the investing gatesPop the risk wordsCatch the return measures