The Excess Return Required from a Risky Asset Over That

question 23

Multiple Choice

The excess return required from a risky asset over that required from a risk-free asset is called the:

• A) risk premium.
• B) geometric premium.
• C) excess return.
• D) average return.
• E) variancE.

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Definitions:

Real Median Household Income

The midpoint of household income distribution after adjusting for inflation, which represents the purchasing power of a typical household.

Squeeze

A financial or economic situation where resources such as money are limited, leading to pressure on individuals or families.

Americans

Citizens of or people living in the United States of America.

Work

A physical or mental activity that accomplishes or produces something, either goods or services.