Spencer is considering investing $5,000 in higher risk debt securities that pay 7% for a ten-year period
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Spencer is considering investing $5,000 in higher risk debt securities that pay 7% for a ten-year period of time. What is the risk premium on that investment assuming he can earn 2.5% on a one-year CD? What does the size of the risk premium tell you about the investment?
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Risk premium 7 25 45 The ...View the full answer
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