The level of total return needed to be compensated for the risk taken is ________.
A) required return
B) made up of a risk-free rate and a risk premium
C) both a and b
D) None of the above

Question

Quizplus · Accepted Answer

The level of total return needed to be compensated for the risk taken is indeed referred to as the required return, which is made up of a risk-free rate and a risk premium, thus making both A and B correct.

The Level of Total Return Needed to Be Compensated for the Risk