Proficient-level: "If the risk-free rate is 3 percent and the risk premium is 5 percent, what is the required return?" (Cornett, Adair, & Nofsinger, 2016, p. 259).

Required rate of return = risk free rate + risk premium.

=3% +5% = 8%

Distinguished-level: Identify which financial security's return is typically considered the risk-free rate.