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7.) Which of the following is the formula used to describe the components of risk premium? A. risk premium= expected return + projected return B.

7.) Which of the following is the formula used to describe the components of risk premium?

A. risk premium= expected return + projected return

B. total returns= expected return + unexpected return

C. unexpected returns = systematic portion + unsystematic portion

D. risk premium = expected return - risk-free rate

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