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A risk-free investment of $5000 will return 3%. A risky $5000 investment has a 23% chance of defaulting and returning only $3500. What default premium

A risk-free investment of $5000 will return 3%. A risky $5000 investment has a 23% chance of defaulting and returning only $3500. What default premium must the risky investment offer?

Group of answer choices

7.5%

9.6%

3.0%

9.9%

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