The Market Risk Premium Is Computed By

question 339

Multiple Choice

The market risk premium is computed by:

• A) Adding the risk-free rate of return to the inflation rate.
• B) Adding the risk-free rate of return to the market rate of return.
• C) Subtracting the risk-free rate of return from the inflation rate.
• D) Subtracting the risk-free rate of return from the market rate of return.
• E) Multiplying the risk-free rate of return by a beta of 1.0.

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