What Is the Amount of the Excess Return on a Risk

question 20

Multiple Choice

What is the amount of the excess return on a risk - free security if the risk - free rate is 4% and the market rate of return is 11%?

• A) 0%
• B) 2%
• C) 4%
• D) 7%
• E) 11%

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Definitions:

Product Life Cycle

Four basic stages—introduction, growth, maturity, and decline—through which a product progresses.

Informative Advertising

Advertising that focuses on providing factual information about a product or service to educate the target audience.

Introductory Stage

The initial phase in the product life cycle where a new product is launched into the market.

Free Drinks

Complimentary beverages offered by establishments, events, or organizations as a form of hospitality or promotion.