$4$

$5$ points

Which of the following is FALSE about a risk premium?

Premium is paid to a stockholder to compensate her for bearing a higher risk

It is the difference between required return on the investment and risk$-$free return on an investment

Risk premium refers to risk$-$free return for low$-$risk assets

It is the difference between returns for a low$-$risk asset and a high$-$risk asset