If the risk-free rate is 8 percent and the market risk premium is 2 percent, what is the required return for the market?
A) 2 percent
B) 6 percent
C) 8 percent
D) 10 percent

Name: If the risk-free rate is 8 percent and the market risk premium is 2 percent, what is the required return for the market? A) 2 percent B) 6 percent C) 8 percent D) 10 percent
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Question

Quizplus · Accepted Answer

The required return for the market is calculated by adding the risk-free rate to the market risk premium, which is 8% + 2% = 10%.

If the Risk-Free Rate Is 8 Percent and the Market