The Expected Risk Premium on a Security Is Computed by

Multiple Choice

The expected risk premium on a security is computed by

A) Subtracting the security's expected return from the risk-free rate
B) Subtracting the expected market return from the security's expected return
C) Subtracting the risk-free rate from the security's expected return
D) Adding the security's expected return to the risk-free rate
E) Adding the security's expected return to the expected return on the market