The risk-free rate of return is composed of which of the following elements:
A)risk premium and inflation
B)cost of capital and risk premium
C)real rate of return and risk premium
D)real rate of return and inflation

Question

Quizplus · Accepted Answer

The risk-free rate of return is composed of the real rate of return and inflation. The real rate of return is the return on an investment without considering inflation, and when inflation is added, it gives the risk-free rate.

The Risk-Free Rate of Return Is Composed of Which of the Following