- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 37. Economics and Investment Markets
- Subject 1. Framework for the Economic Analysis of Financial Markets
CFA Practice Question
Which component of the discount rate varies the most among various asset classes?
B. Inflation premium
C. Risk premium
A. Real risk-free interest rate
B. Inflation premium
C. Risk premium
Correct Answer: C
The variation in the risk premium is largely responsible for the distinction between one asset class and another.
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