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The maker of Skittles candy tested and prepared hundreds of batches of candy for taste-testers, who were employees of the company. The taste-testers were instructed to identify the best formula for mint-flavoured Skittles. What type of test was used?
Risk Premium
The additional return required by an investor for tolerating a higher level of risk compared to a safe investment.
Market Risk
The possibility for investors to experience losses due to factors that affect the overall performance of the financial markets.
Total Risk
The complete spectrum of all types of risk that an investment or project could potentially face, including both systematic and unsystematic risks.
Expected Return
The expected return is the average return expected on an investment over a period.
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