The Market Risk Premium Is Computed By

question 51

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 the market beta.

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