A Compound and a Mixture Differ in That Only the Mixture

question 75

Multiple Choice

A compound and a mixture differ in that only the mixture

• A)is made up of more than one element.
• B)may be made up of components that may be molecules.
• C)is of fixed composition.
• D)exhibits the properties of its individual components.

---

Definitions:

Risk Premium

The extra return above the risk-free rate that investors require as compensation for the risk of an investment.

Simple CAPM

A model that describes the relationship between the risk of a security and its expected return, based on the premise that markets are efficient.

Risk-free Rate

The theoretical return on an investment with zero risk, typically represented by the yield on government bonds.

Expected Return

The expected return is the anticipated average return on an investment, considering both the probability of each outcome and the return of each outcome.