The real rate of return is approximately equal to
A) the risk-free rate plus a risk premium.
B) required return minus the inflation premium.
C) the risk-free rate minus the inflation premium.
D) required return minus the risk premium.

Question

Quizplus · Accepted Answer

The real rate of return is calculated by subtracting the inflation premium from the risk-free rate, as it reflects the return after adjusting for inflation.

The Real Rate of Return Is Approximately Equal to