Define what the term 'risk premium' is: An asset's risk premium is the premium that investors earn for bearing its risk so it is the spread between the asset's average historical returns and its volatility An asset's risk premium is the premium that investors earn for bearing its risk so is defined as the asset's historical geometric return over its volatility An asset's risk premium is the premium that investors earn for bearing its risk, and as such is simply the asset's return les the risk-free rate (which is often defined as the US Treasury bill rate) None of the above are even remotely true