Multiple Choice
The market risk premium is a reflection of the investment community's level of risk aversion. It is calculated by:
A) subtracting the return on the market from the risk-free rate.
B) multiplying the beta of a stock by the result of subtracting the risk-free rate from the return on the market.
C) subtracting the risk-free rate from the return on the market.
D) multiplying beta of a stock by the expected return on the market.
Correct Answer:
Verified
Correct Answer:
Verified
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