________ is a form of compensation for the investor who takes on the risk of the investment.
A)Risk premium
B)Interest
C)Coupon payment
D)All options are correct.

Question

Quizplus · Accepted Answer

All options listed are forms of compensation for investors who take on the risk of an investment. Risk premium is the extra return above the risk-free rate that investors require to compensate them for the risk of an investment. Interest is the cost of borrowing money, which compensates lenders for the risk of lending. Coupon payments are a form of interest paid on bonds, compensating bondholders for their investment risk.

________ Is a Form of Compensation for the Investor Who