The Term Excess Return Refers to ________

question 71

Multiple Choice

The term excess return refers to ________.

• A) returns earned illegally by means of insider trading
• B) the difference between the rate of return earned and the risk-free rate
• C) the difference between the rate of return earned on a particular security and the rate of return earned on other securities of equivalent risk
• D) the portion of the return on a security that represents tax liability and therefore cannot be reinvested

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Definitions:

Late Marriage

The practice of entering into marriage at an older age, often considered to be beyond the traditional marrying age in a given society.

Remarry

The act of getting married again after a divorce or the death of a spouse.

Status

A social or professional position, rank, or standing of an individual or concept within a group or society.

Personal Happiness

A subjective state of well-being and contentment, characterized by positive emotions and life satisfaction.