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On 6/1/11, Humaira <mc100403601@vu.edu.pk> wrote:
> *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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