Q443
Risk free rate is subtracted from expected market return is considered as
A.
country risk
B.
diversifiable risk
C.
equity risk premium
AnswerD.
market risk premium
Answer: Option C
Solution
Answer: Option C
Solution:
Risk free rate is subtracted from expected market return is considered as equity risk premium. Equity risk premium refers to the excess return that investing in the stock market provides over a risk-free rate.