The Risk Premium for an Individual Security Is Equal to the ____

question 23

Multiple Choice

The risk premium for an individual security is equal to the ____.

• A) beta times the market return
• B) difference between the required return and the risk-free rate
• C) weighted average of the individual security betas in a portfolio
• D) security's covariance divided by the variance of the market

---

Definitions:

Thalamus

A vital brain structure acting as a relay station, transmitting sensory and motor signals to the cerebral cortex, and regulating consciousness, sleep, and alertness.

Sensory Projection

The process whereby sensory stimuli are transmitted from peripheral receptors to specific areas of the brain for interpretation.

Puberty

A phase of human development during which a child transitions into an adult, marked by physical changes that enable reproduction.

Breathing

The physiological process of inhaling oxygen and exhaling carbon dioxide, essential for life to sustain metabolic processes.