The Average Expected Rate of Return of a fiNancial Asset

question 58

Multiple Choice

The average expected rate of return of a financial asset equals

• A) the rate that compensates for time preference plus the rate that compensates for risk.
• B) the rate that compensates for time preference plus the rate of inflation.
• C) beta plus the rate that compensates for risk.
• D) the risk-free interest rate plus the rate of inflation.

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Definitions:

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A common fitness test of flexibility that measures the ability to reach forward while sitting on the floor with legs extended.

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