Question: Risk premium is defined as: The total return on a risky asset that exceeds the inflation rate. The return on a risky asset that exceeds

Risk premium is defined as:

The total return on a risky asset that exceeds the inflation rate.

The return on a risky asset that exceeds the return on a risk-free asset.

The risk-free rate of return plus the inflation rate.

The rate of return required by investors in risky assets.

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