Required Return 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

Question

Quizplus · Accepted Answer

The required return for the market can be calculated as the sum of the risk-free rate and the market risk premium. Therefore, the required return for the market is:

8% + 2% = 10%

Option D (10 percent) is the correct answer.

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