The Risk-Free Rate of Return Is Composed of Which of the Following

question 2

Multiple Choice

The risk-free rate of return is composed of which of the following elements:

• A)risk premium and inflation
• B)cost of capital and risk premium
• C)real rate of return and risk premium
• D)real rate of return and inflation

---

Definitions:

Future Events

Occurrences or situations that have not yet happened but are anticipated or expected to occur.

Collective Unconscious

A term coined by Carl Jung referring to the part of the unconscious mind that is shared by a society, a people, or all humankind and is the source of universally inherited ideas and patterns.

Core or Pattern

Core or pattern refers to the underlying structure or essence of a system, personality, or theory, often determining its characteristics and behaviors.

Id

In Freudian psychoanalytic theory, the part of the mind that is the source of instinctual impulses and demands for immediate satisfaction of basic needs.