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Mei Is considering making an investment in Alliah company stock. Because the stock is riskier than the return, she could earn by investing in risk-free
Mei Is considering making an investment in Alliah company stock. Because the stock is riskier than the return, she could earn by investing in risk-free assets such as treasury bonds, she requires a higher rate of return- an additional 5%. What does this additional 5% return represent?
- Interest risk.
- real interest rate.
- Nominal interest rate.
- Risk premium.
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