The expected return is usually the baseline risk-free rate of return that we demand to compensate for inflation and the time value of money.

Name: The expected return is usually the baseline risk-free rate of return that we demand to compensate for inflation and the time value of money.
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The expected return should be higher than the risk-free rate of return to compensate for the additional risk undertaken by the investor. This additional return is called the risk premium.

The Expected Return Is Usually the Baseline Risk-Free Rate of Return