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The extra return earned for bearing risk is called the:

ARisk procedure
BRisk projection
CRisk premium
DRisk provision
Answer & Solution
Correct answer: C. Risk premium
1. A risk free asset pays a base return. 2. Anything above that compensates for risk. 3. That extra is the risk premium. _Source: OpenStax Principles of Finance, Chapter 15, Risk and Return._
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