Why could a lenders 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 21-6)

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ISE Financial Markets And Institutions

ISBN: 9781265561437

8th International Edition

Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts

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