Question:

An investment requires a total return that comprises

A.

A real rate of return and compensation for inflation

B.

A real rate of return, compensation for inflation, and a risk premium

C.

Compensation for inflation and a risk premium

D.

A real rate of return, compensation for inflation, a risk premium, and compensation for time and effort devoted to researching alternative investments

Answer» b. A real rate of return, compensation for inflation, and a risk premium