Required Return If the Risk-Free Rate Is 10 Percent and the Market

question 36

Multiple Choice

Required Return If the risk-free rate is 10 percent and the market risk premium is 4 percent,what is the required return for the market?

• A)4 percent
• B)7 percent
• C)10 percent
• D)14 percent

---

Definitions:

Scientific Charity

An approach to philanthropy that emphasizes the use of research, evidence, and data to inform charitable activities and maximize impact.

Change Agent

An individual or group that actively facilitates, implements, and supports change within an organization or community.

Social Innovation

The development and implementation of new, effective solutions to social problems or needs that create social value and involve the collaboration of multiple stakeholders.

Nonprofit Sector

a segment of society that is organized to meet public or social goals, where the surplus revenues are reinvested in the organization rather than distributed to shareholders.