The Risk Premium Is Computed by ________ the Average Rate

Multiple Choice

The risk premium is computed by ________ the average rate of return for an investment.

A) subtracting the inflation rate from
B) adding the inflation rate to
C) subtracting the average return on U.S.Treasury bills from
D) adding the average return on U.S.Treasury bills to
E) subtracting the average return on long-term government bonds from