Which of the following is typically considered the return on U.S. government bonds and bills and equals the real interest plus the expected inflation premium?
A)Required return
B)Risk-free rate
C)Risk premium
D)Market risk premium

Question

Quizplus · Accepted Answer

The risk-free rate is typically considered as the return on U.S. government bonds and bills, as they are considered to be virtually risk-free. The risk-free rate is comprised of the real interest rate plus the expected inflation premium.

Which of the Following Is Typically Considered the Return on U.S