Multiple Choice
How is a rate of return calculated on the basis of the risk premium and the risk- free rate?
A) A premium is subtracted from the risk- free discount rate.
B) A risk premium is added to the risk- free discount rate.
C) The risk- free rate is discounted to create a premium.
D) The premium rate is discounted to minimise risk.
Correct Answer:
Verified
Correct Answer:
Verified
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