The Excess Return Earned by an Asset That Has a Beta

question 59

Multiple Choice

The excess return earned by an asset that has a beta of 1.0 over that earned by a risk-free asset is referred to as the:

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

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Definitions:

Cult of Domesticity

A prevailing value system among the upper and middle classes during the 19th century in the United States and Britain that emphasized the virtues of women in their roles as mothers and housewives.

Marquis de Lafayette

A French aristocrat and military officer who played a significant role in the American Revolution by aiding the Thirteen Colonies in their quest for independence from Britain.

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The historical event achieved in 1776 when the Thirteen Colonies successfully declared their independence from British rule, marked formally by the Declaration of Independence.