Over the Long-Term, the Greater the Volatility in the Returns

question 193

Multiple Choice

Over the long-term, the greater the volatility in the returns on a risky security the:

• A) Lower the average total return.
• B) Greater the average risk premium.
• C) Greater the risk-free rate of return.
• D) Lower the average risk premium.
• E) Lower the average capital gains yield.

---

Definitions:

Credit Terms

The conditions under which credit will be extended to a customer, including repayment schedule, interest rate, and the period of time that is allowed before payment is due.