The market risk premium refers to which of the following?

The market risk premium refers to which of the following? 







A) The spread of the expected market return over the risk-free rate
B) The expected rate of return obtained by investing in a "riskless" security
C) A measure of the covariance between the rate of return on a company's stock and the overall market return
D) The required annual rate of return that a company's equity investors expect to receive






Answer: A