The expected rate of return is equal to:
A)The risk free rate divided by the risk premium
B)The risk free rate minus the risk premium
C)The risk premium minus the risk free rate
D)The risk premium divided by the risk free rate
E)None of the above

Question

Quizplus · Accepted Answer

The expected rate of return is not accurately described by any of the options provided. It is typically calculated as the risk-free rate plus the risk premium, not through subtraction or division as suggested in the options.

The Expected Rate of Return Is Equal To