-Refer to the Table 4-2

question 192

Multiple Choice

-Refer to the Table 4-2. What is the space that would represent an increase in equilibrium quantity and an indeterminate change in equilibrium price?

• A) space A
• B) space B
• C) space C
• D) space D

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Definitions:

Risk Premium

The return in excess of the risk-free rate of return that an investment is expected to yield.

Risky Asset

An investment that carries a significant possibility of losing some or all of its value.

Risk-Free Investment

An investment that is considered to be free of credit risk, with the most common examples being government-issued securities.

Capital Gains Return

The profit achieved from the sale of a security or investment which has increased in value over the holding period.