____ Software Helps You Carry Out Tasks Using a Computer

question 4

Multiple Choice

____ software helps you carry out tasks using a computer, such as editing a photo.

• A) Application
• B) System
• C) Shareware
• D) Utility

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Definitions:

Risk Premium

The risk premium is the excess return that an investor requires for holding a risky asset over a risk-free asset, compensating for the risk of the investment.

Risk-free Rate

The theoretical rate of return on an investment with zero risk, often represented by government bonds.

Risk Premium

The extra return above the risk-free rate that investors demand for choosing to invest in a riskier asset.

Well-diversified Portfolio

An investment portfolio strategically crafted to include a variety of asset classes in order to minimize risk.