Which of the Following Is Expressed as E(RM)− Rƒ

question 13

Multiple Choice

Which of the following is expressed as E(RM) − Rƒ?

• A)market risk premium
• B)individual security risk premium
• C)real rate of return
• D)total expected rate of return
• E)market rate of return

---

Definitions:

Shares Of Stock

Units of ownership interest in a corporation or financial asset, which provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Cash

Physical or digital money in hand or readily available for transactions or use.

Convertible Debt

A short-term loan that can be turned into equity when future financing is issued.

Convertible Bond

A type of bond issued by a corporation that can be converted into a predetermined number of the company's equity shares at certain times during the bond's life, usually at the discretion of the bondholder.