Why could a lender's expected return be lower when the risk premium is increased on a loan?

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Why could a lender's expected return be lower when the risk premium is increased on a loan? (LG 20-6) The following Questions are related to the Appendix material.

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Financial Markets And Institutions

ISBN: 9780078034664

5th Edition

Authors: Anthony Saunders, Marcia Cornett

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Why could a lender's expected return be lower when the risk premium is increased on a loan?

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Financial Markets And Institutions

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