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Risk Premium. Spencer is considering investing $4,000 in higher risk debt securities that pay 6% for a ten-year period of time. What is the risk

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Risk Premium. Spencer is considering investing $4,000 in higher risk debt securities that pay 6% for a ten-year period of time. What is the risk premium on that investment assuming he can earn 2.2% on a one-year CD? What does the size of the risk premium tell you about the investment? The risk premium is 3.8%. (Round to one decimal place.) What does the size of the risk premium tell you about the investment? (Select the best answer below.) O A. The risk premium is sizable. The risk associated with the 6% return is much higher than the one-year CD. O B. The risk premium is sizable. The risk associated with the 2.2% return is much higher than the one-year CD O C. The risk premium is minimal. The risk associated with the 6% return is almost the same as the risk associated with the one-year CD. D. The risk premium is sizable. The risk associated with the 6% return is much lower than the one-year CD

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