Consider two assets you have the option of purchasing. The first is a two-year, risk-free discount bond that has a face(par) value of $1,000. The second is a risky two-year asset that has an expected value of $1,000 but that value is uncertain. If the safe asset is selling for $924.55 and the risky asset is selling for $873.44, what is the risk premium, ?????

Answer rating: 100% (QA)

The risk premium is the difference between the expected return of a ... View the full answer