Question: Excess returns will depend on a designated investment return comparison for analysis. The excess return is computed as the: a. return on a security minus

Excess returns will depend on a designated investment return comparison for analysis. The excess return is computed as the:

a. return on a security minus the inflation rate.

b. return on a risky security minus the risk-free rate.

c. risk premium on a risky security minus the risk-free rate.

d.

risk-free rate plus the inflation rate.

e. risk-free rate minus the inflation rate.

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