Required Return If the risk-free rate is 10 percent and the market risk premium is 4 percent,what is the required return for the market?
A)4 percent
B)7 percent
C)10 percent
D)14 percent

Name: Required Return If the risk-free rate is 10 percent and the market risk premium is 4 percent,what is the required return for the market? A)4 percent B)7 percent C)10 percent D)14 percent
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Question

Quizplus · Accepted Answer

The required return for the market is the sum of the risk-free rate and the market risk premium, which is 10% + 4% = 14%.

Required Return If the Risk-Free Rate Is 10 Percent and the Market