The Excess Return Earned by an Asset That Has a Beta

question 60

Multiple Choice

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:

• A) market risk premium.
• B) risk premium.
• C) systematic return.
• D) total return.
• E) real rate of return.

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Definitions:

Aggressive Models

Individuals or representations that exhibit hostile or violent behavior, which can influence others through observational learning or imitation.

Live

To be alive, to exist, or to have life; can also refer to broadcasting or performing in real-time.

Social Learning Theory

A theory that suggests people learn new behaviors and information by watching and imitating others.

Instrumental Learning Theory

A concept in psychology that emphasizes learning through the consequences of our actions, often involving rewards and punishments.