Required Return If the Risk-Free Rate Is 8 Percent and the Market

question 80

Multiple Choice

Required Return If the risk-free rate is 8 percent and the market risk premium is 2 percent,what is the required return for the market?

• A)2 percent
• B)6 percent
• C)8 percent
• D)10 percent

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Definitions:

Health Expectancy

An estimate of the amount of time an individual is expected to live in good health, taking into account mortality and morbidity.

Expert Recommendation

Advice or guidance given by someone with extensive knowledge or proficiency in a specific field, often sought to aid decision-making processes.

Health Insurance

A type of insurance coverage that typically pays for an insured person's medical and surgical expenses.

Health Care Costs

Expenses related to the prevention, diagnosis, treatment, and management of illness and the preservation of mental and physical well-being through the services offered by the medical industry.