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Management · Q799

Financial Management

Graduate and Post Graduate · Management · question 799

Q799

Required return is 15% and premium for risk is 11% then risk free return would be

A.
26.00%
B.
4.00%
Answer
C.
16.50%
D.
1.36%

Answer: Option B

Solution

Answer: Option B
Solution:
Risk free return = Required return - Premium for risk
= 15% - 11% = 4%.