Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
Basic Question 3 of 4
Examples of risk premium of the discount rate include ______.
II. liquidity premium
III. inflation premium
I. default premium
II. liquidity premium
III. inflation premium
User Contributed Comments 0
You need to log in first to add your comment.
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
explain the notion that to affect market values, economic factors must affect one or more of the following: (1) default-free interest rates across maturities, (2) the timing and/or magnitude of expected cash flows, and (3) risk premiums;
explain the role of expectations and changes in expectations in market valuation;
CFA® 2025 Level II Curriculum, Volume 6, Module 37.