The Risk Premium Is Computed by ______ the Average Return

question 40

Multiple Choice

The risk premium is computed by ______ the average return for the investment.

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