The Average Expected Rate of Return of a Financial Asset

question 100

Multiple Choice

The average expected rate of return of a financial asset equals:

• A) the rate that compensates for time preference plus the rate that compensates for risk.
• B) the rate that compensates for time preference plus the rate of inflation.
• C) beta plus the rate that compensates for risk.
• D) the risk-free interest rate plus the rate of inflation.

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Definitions:

Network Environment

A digital infrastructure that allows for the interconnection and interaction of computers, devices, and systems.

360o Feedback

A performance appraisal method where an employee is evaluated by feedback from superiors, peers, subordinates, and sometimes clients.

Performance Appraisal System

A structured process by which employee performance is evaluated in terms of quality, quantity, cost, and time, typically by the corresponding manager or supervisor.

Multiple Source

The practice of obtaining information or input from various origins to increase reliability and objectivity.