The Two Components That Make Up the Risk-Free Rate Are

question 90

Multiple Choice

The two components that make up the risk-free rate are:

• A)real rate of return and capital gains.
• B)risk-free assets and capital gains.
• C)real rate of return and the inflation factor.
• D)real assets and the inflation factor.
• E)capital gains and the inflation factor.

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Definitions:

Legitimate Power

A form of authority where power is given based on a person's position or role within a hierarchical structure.

Zone Of Indifference

A range of actions or decisions by authority figures that individuals are willing to accept or comply with without objection.

Shareholder Value

A corporation's commitment to increase the wealth of its stockholders by improving performance, profitability, and share price.

Employee Commitment

Refers to the level of loyalty and dedication an employee feels toward their organization.