Multiple Choice
The market risk premium is computed by:
A) Adding the risk-free rate of return to the inflation rate.
B) Adding the risk-free rate of return to the market rate of return.
C) Subtracting the risk-free rate of return from the inflation rate.
D) Subtracting the risk-free rate of return from the market rate of return.
E) Multiplying the risk-free rate of return by a beta of 1.0.
Correct Answer:
Verified
Correct Answer:
Verified
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