When the investor views the user of funds as a low risk borrower, he/she will charge the user a risk premium.()
举一反三
- If acceptable audit risk is low, and inherent risk and control risk are both low, then planned detection risk should be high. （ ）
- (I) The risk premium widens as the default risk on corporate bonds increases. (II) The risk premium widens as corporate bonds become less liquid.
- The spread between the interest rates on bonds with default risk and default-free bonds is called the risk premium.
- An analyst does research about cost of common equity. With respect to calculating the cost of equity using the bond yield plus risk premium approach, which of the following statements about the risk premium is least accurate（） A: The risk premium compensates for the additional risk of equity compared with debt. B: We often estimate the risk premium using historical spreads between bond yields and stock yields. C: In developed country markets, a typical risk premium added is in the range of 2 to 4 percent.
- Due to its impulse to pursue high profits, international hot money is bound to look for which of the following investment fields? A: Low risk, low profit B: Low risk, high profit C: High risk, high profit D: High risk, low profit