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Question # 3
In stock market XYZ company is offering 16% annual return on bonds, however, Treasury Bills are providing 7% annual return. Calculate the risk premium if an investor invest in XYZ company.

Solution:

Risk premium = Expected return on risky investment - Risk free investment

plz elaborate it.

hum konsi cheez ko kahan rakahain gay formula main?

concept bhi explain kar dain. plz

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