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A risk-free investment of $10,000 will return 8%.A risky $10,000 investment has a 50% chance of defaulting and returning only $3,000.What default premium must the

A risk-free investment of $10,000 will return 8%.A risky $10,000 investment has a 50% chance of defaulting and returning only $3,000.What default premium must the risky investment offer?

A) 78.0%

B) 36.0%

C) 10.6%

D) 25.2%

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