Examveda
Examveda

Market risk premium is 8% and risk free return is 7% then market required return would be

A. 15.00%

B. 1.00%

C. 5.60%

D. 1.14%

Answer: Option A

Solution(By Examveda Team)

Required market return = Market risk premium + Risk free return
= 8% + 7% = 15%.

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