The Excess Return Is Computed As The:

(Correct Answer Below)

The Excess Return Is Computed As The:

a. return on a security minus the inflation rate. b. return on a risky security minus the risk-free rate. c. risk premium on a risky security minus the risk-free rate. d. the risk-free rate plus the inflation rate. e. risk-free rate minus the inflation rate.
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b. return on a risky security minus the risk-free rate.

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