Risk premia are:

Note that there may be zero true statements $($in which case answering nothing is the correct answer$)$ or more than one true statement $($select all true$)$ and false statements will deduct grades.

Question $8$Answer

a$.$

Compensation paid to investors in order to encourage them to invest in risky projects

b$.$

Variable $($sometimes high, sometimes low$)$ depending on which risk they are associated

c$.$

Able to rise and fall $($increase$/$decrease$)$ as the appetite for risk from the average investor changes

d$.$

Much more influential in the pricing of Sovereign $($government$)$ debt than in pricing stocks or corporate bonds

e$.$

Always greater than zero if investors dislike the risk they are being asked to bear

f$.$

Not perfectly well known or identified but can be estimated using various methodologies including regression analysis