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Which of the following answers is the most correct answer? The market risk premium is: The difference between the market required rate of return [R(RM)]

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Which of the following answers is the most correct answer? The market risk premium is: The difference between the market required rate of return [R(RM)] and the risk free rate of return (RF). The additional return over the risk-free rate required to compensate investors for assuming average risk. Both a and b None of the above

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