Analysts sometimes use a historical market risk premium, the asset$$s current beta, and the current Treasury rate to estimate the asset$$s required return with the CAPM. The Treasury rate is the $\_\_\_\_\_\_\_\_\_\_$ in the model. The maturity of the Treasury rate used should roughly match the asset life so that

Select answer from the options below

risk$-$free rate; it includes the correct inflation expectations.

real return; it includes the correct liquidity premiums.

expected return on the market; it includes the correct risk premium.

risk$-$free rate; it includes the correct inflation expectations and liquidity premiums.