QUESTION

1. Investors require a 4 percent return on risk-free investments. On a particular risky investment, investors require

Category: Business
Subject: Finance
Due Date: 01/30/2016
Question Asked: 2016-01-30 16:56:07

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1. Investors require a 4 percent return on risk-free investments. On a particular risky

investment, investors require an excess return of 7 percent in addition to the risk-free rate of 4

percent. What is this excess return called?

A. Inflation

B. Required

C. Real return

D. Average return

E. Risk premium

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Posted on 2016-01-30 16:56:07

User: LightspeedLearning
Rating: No Rating (0)
earnings: $1.10
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...e a 4 percent return on risk-free investments. On a particula...

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