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Examveda

Required return is 11% and premium for risk is 8% then risk free return will be

A. 3.00%

B. 19.00%

C. 0.72%

D. 1.38%

Answer: Option A

Solution(By Examveda Team)

Risk free return = Required return - Premium for risk
= 11% - 8% = 3%

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