Joyne is expecting to earn a return of $5\%$ on an investment she recently purchased. If the risk$-$free rate is $2\%,$ what risk premium is she anticipating on the investment?

Answer

a$\mathrm{.}6\%$

b$\mathrm{.}4\%$

c$\mathrm{.}3\%$

d$\mathrm{.}2\%$