Risk Premium Is Defined As

Multiple Choice

Risk premium is defined as:

A) The total return on a risky asset that exceeds the inflation rate.
B) The return on a risky asset that exceeds the return on a risk-free asset.
C) The risk-free rate of return plus the inflation rate.
D) The real rate of return that exceeds the risk-free rate of return.
E) The rate of return required by investors in risky assets.