The market risk premium is the:

a.

difference between the expected return on a market portfolio and the risk-free rate of return.

b.

difference between the expected return on an individual security and that of the overall market.

c.

difference in returns on a risky asset for the current year as compared to the prior year.

d.

net present value of the additional return an investor receives for bearing risk.

e.

total return earned by a portfolio based on a market basket of securities.