The Excess Return Earned by an Asset That Has a Beta

question 78

Multiple Choice

The excess return earned by an asset that has a beta of one over that earned by a risk-free asset is referred to as the

• A)market rate of return.
• B)systematic return.
• C)real rate of return.
• D)market risk premium.
• E)total return.

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Definitions:

Soccer Team

A group of players, typically eleven, who participate together in the sport of soccer, competing in matches against other teams.

Random Variable

An unpredictable phenomenon's numerical outcome represented as a variable.

Random Variable

A random variable is a variable whose values depend on outcomes of a random phenomenon.

Manufacturer

An entity or company that makes goods for sale through the process of manufacturing.