The Market Risk Premium Can Be Defined as The

question 103

Multiple Choice

The market risk premium can be defined as the:

• A) Return on the market plus the risk-free rate of return.
• B) Amount of return received for accepting unsystematic risk.
• C) Beta multiplied by the risk-free rate of return.
• D) Slope of the market portfolio's security market line.
• E) Intercept point of the security market line.

---

Definitions:

Frequency Polygon

A graphical representation of the distribution of a dataset that shows how often each value in the dataset occurs.

Ogive

A graphical representation of the cumulative frequency or cumulative relative frequency on a graph.

Pie Chart

A circular statistical graphic which is divided into slices to illustrate numerical proportion.

Cumulative Frequency Distribution

A frequency distribution that shows frequencies for class intervals along with the cumulative frequency at each.