The Expected Return on the Market Is the Risk-Free Rate

question 66

Multiple Choice

The expected return on the market is the risk-free rate plus the ________.

• A) diversified returns
• B) equilibrium risk premium
• C) historical market return
• D) unsystematic return

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Definitions:

Evaluation Apprehension

Anxiety or concern about being judged by others, often affecting performance in tasks or decisions.

Deindividuation

Deindividuation refers to a psychological state where an individual loses self-awareness and a sense of individuality, often leading to uninhibited or norm-defying behavior, usually in group settings.

Anonymous

Describing someone or something that is unnamed or not identified by name, often used to maintain privacy or confidentiality.

Self-Aware

Having conscious knowledge of one's own character, feelings, motives, and desires.