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    Contemporary Financial Management Study Set 1
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    Exam 8: Analysis of Risk and Return
  5. Question
    That Portion of the Risk Premium That Is Based on the Ability
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That Portion of the Risk Premium That Is Based on the Ability

Question 111

Question 111

Multiple Choice

That portion of the risk premium that is based on the ability of the borrower to repay principal and interest is the:


A) Maturity risk
B) Default risk
C) Seniority risk
D) Business risk

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