savtaylor0520 savtaylor0520

31-08-2021
Mathematics

contestada

If the risk-free rate is 10 percent and the market risk premium is 4 percent, what is the required return for the market?

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amritdhungel32 amritdhungel32

31-08-2021

Answer:

To calculate the market risk premium, simply subtract the risk-free rate from the market rate of return. For example, if the risk-free rate is 4 percent and the market rate of return is 10 percent, the market risk premium is 6 percent.

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