What Two Elements Are Represented in Security Returns

question 68

Multiple Choice

What two elements are represented in security returns?

• A)a premium for market risk and for unique risk
• B)a premium for unique risk and a premium for firm-specific risk
• C)a premium for diversification and a premium for portfolio risk
• D)a premium for time value of money and a premium for market risk

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Definitions:

Breach Of Contract

The violation of any agreed-upon terms or conditions in a binding contract, which can lead to legal consequences for the party in breach.

Designated Contract

A specific agreement set apart for a unique purpose or recognized formally in a particular context.

Anticipatory Breach

Repudiation of a contract before performance is due.

Void Ab Initio

A term referring to agreements or contracts that are considered null from the start due to illegality or inability to enforce.