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The Excess Return Earned by an Asset That Has a Beta

question 60

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The excess return earned by an asset that has a beta of 1.34 over that earned by a risk-free asset is referred to as the:


Definitions:

Net Income

The ultimate earnings of a company, determined by subtracting all operational costs and governmental levies from its revenue.

Stockholders

Individuals or entities that own shares of stock in a corporation, thereby owning a portion of the company.

Liabilities

Financial obligations or debts that a company owes, which it must pay back in the future.

Assets

Resources owned by a business or individual that have economic value.

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