Which of the Following Is the Best Definition of Expected

question 313

Multiple Choice

Which of the following is the best definition of expected return?

• A) Percentage of a portfolio's total value in a particular asset.
• B) Group of assets such as stocks and bonds held by an investor.
• C) The difference between the return on a risky investment and a risk-free investment
• D) Return on a risky asset expected in the future.
• E) Equation of the SML showing the relationship between expected return and beta.

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Definitions:

Termination Benefit

Payments or benefits provided to employees as compensation for terminating their services before the normal retirement age.

Employee Resignation

The act of an employee voluntarily leaving their job and ceasing employment with their current employer.

Voluntary Redundancy

A financial incentive offered by an employer for employees to voluntarily leave their jobs, typically as part of cost-cutting measures or organizational restructuring.

Long Service Leave

An employee benefit that grants extended paid leave for those who have been employed for a long period with the same employer.