Examveda
Examveda

Risk free rate is subtracted from expected market return is considered as

A. country risk

B. diversifiable risk

C. equity risk premium

D. market risk premium

Answer: Option C

Solution(By Examveda Team)

Risk free rate is subtracted from expected market return is considered as equity risk premium. Equity risk premium refers to the excess return that investing in the stock market provides over a risk-free rate.

This Question Belongs to Commerce >> Financial Management

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