The Additional Return Earned for Accepting Risk Is Called The

question 2

Multiple Choice

The additional return earned for accepting risk is called the:

• A)inflated return.
• B)capital gains yield.
• C)real return.
• D)riskless rate.
• E)risk premium.

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Definitions:

Double Counting

The mistake of including both the value of intermediate products and the value of final products in calculating gross domestic product; counting the same production more than once

Financial Assets

Instruments that represent a financial value, including stocks, bonds, bank deposits, and mutual funds.

Transfer Payments

Cash or in-kind benefits given to individuals as outright grants from the government.

Double-Entry Bookkeeping

An accounting method that records each transaction in two accounts, ensuring that the total debits equals the total credits and maintaining the balance of the accounting equation.