The "market RISK premium" a) Is the additional market return over the risk-free rate required to compensate for taking risk O b) Measures a stock's price individual volatility relative to that of an average stock c) Is the cost of issuance of new common stock d) Is the "total return on investment" of a stock

The no-arbitrage price of Security C?

Determine how the appropriate yield to be offered on a security is affected by a higher risk-free rate. Explain the logic of this relationship. . Determine how the appropriate yield to be offered on a security is affected by a higher default risk premium. Explain the logic of this relationship.

Explain Comparing Risk Premiums?