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    Principles of Managerial Finance
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    Exam 12: Risk and Refinements in Capital Budgeting
  5. Question
    The Difference by Which the Required Discount Rate Exceeds the Risk-Free
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The Difference by Which the Required Discount Rate Exceeds the Risk-Free

Question 39

Question 39

Multiple Choice

The difference by which the required discount rate exceeds the risk-free rate is called the ________.


A) excess return
B) risk premium
C) inflation premium
D) maturity premium

Correct Answer:

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