CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

The market risk premium is the ______.

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
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