Question

The expected return on the market will increase if the risk-free rate Blank______ or if the market risk premium Blank______.

Multiple choice question.

increases; decreases


decreases; decreases


increases; increases


decreases; increases

Answer 1

The expected return on the market will increase if the risk-free rate **increases** or if the market risk premium **increases**.

So the correct answer is:

**increases; increases**.