Rate of return, which is made up of risk free and business risk element is known

A. nominal rate of return

B. accrual accounting rate of return

C. real rate of return

D. required rate of return

Answer: Option C

Solution(By Examveda Team)

Rate of return, which is made up of risk free and business risk element is known as real rate of return. A real rate of return is the annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external factors.