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You have $3500 to invest in a Certificate of Deposit. The local bank offers 3.0% (per year) for a 12 month FDIC insured CD. A

You have $3500 to invest in a Certificate of Deposit. The local bank offers 3.0% (per year) for a 12 month FDIC insured CD. A non-financial institution offers 8% (per year) on a 12 month investment. What is the risk premium in percentage? Show work.

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