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    Exam 4: Applying the Time Value of Money to Security Valuation
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    The Difference Between the Opportunity Cost of Capital for a Risky
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The Difference Between the Opportunity Cost of Capital for a Risky

Question 26

Question 26

Multiple Choice

The difference between the opportunity cost of capital for a risky security and a risk-free security is referred to as the:


A) required rate of return.
B) term structure.
C) liquidity premium.
D) risk premium.

Correct Answer:

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