- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 2. Portfolio Risk and Return: Part II
- Subject 5. The Capital Asset Pricing Model
CFA Practice Question
The market risk premium is the ______.
B. difference between the rate of return on the market portfolio and the risk-free rate
C. market rate of return
A. difference between the rate of return on an asset and the risk-free rate
B. difference between the rate of return on the market portfolio and the risk-free rate
C. market rate of return
Correct Answer: B
User Contributed Comments 3
| User | Comment |
|---|---|
| gravy | Why isn't it A also? Can't u have market risk premium on a single stock? |
| yly14 | MARKET risk premium. And lets call stock risk premium on a single stock. |
| davcer | gravy A woul be correct for the CAL |