Market required return is subtracted from risk free rate which is used to calculate

quoted risk premium
market risk premium
portfolio risk premium
unquoted risk premium

The correct answer is: B. market risk premium

The market risk premium is the additional return that investors demand for investing in risky assets over and above the return on a risk-free asset. It is calculated by subtracting the risk-free rate from the expected return on the market portfolio.

The quoted risk premium is the difference between the expected return on a risky asset and the risk-free rate. It is calculated by looking at the historical returns of the asset and the risk-free rate.

The portfolio risk premium is the additional return that investors demand for investing in a particular portfolio of assets over and above the return on a risk-free asset. It is calculated by subtracting the risk-free rate from the expected return on the portfolio.

The unquoted risk premium is the additional return that investors demand for investing in a particular asset that is not traded on an exchange. It is calculated by looking at the historical returns of the asset and the risk-free rate.

The market risk premium is the most commonly used measure of risk premium. It is used to calculate the expected return on a risky asset, and it is also used to calculate the cost of capital for a company.

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