Which of the following represents the pure time value of money?
A) Market rate of return
B) Risk-free rate
C) Market risk premium
D) Security risk premium
E) Market risk premium times beta

Question

Quizplus · Accepted Answer

The risk-free rate represents the pure time value of money as it is the rate of return an investor would receive from an investment that is considered to have no risk. It accounts only for the time value of money and not any other factors like inflation or market risk.

Which of the Following Represents the Pure Time Value of Money