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The market risk premium is the: a. difference in returns on a risky asset for the current year as compared to the prior year. b.

The market risk premium is the:

a.

difference in returns on a risky asset for the current year as compared to the prior year.

b.

difference between the expected return on an individual security and that of the overall market.

c.

net present value of the additional return an investor receives for bearing risk.

d.

difference between the expected return on a market portfolio and the risk-free rate of return.

e.

total return earned by a portfolio based on a market basket of securities.

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