Ethics Require

question 42

Multiple Choice

Ethics require:

• A)knowledge of moral principles.
• B)skill in applying moral principles.
• C)the development of virtues within the individual.
• D)All of the given answers are correct.

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Definitions:

Market Risk Premium

The additional return investors expect for holding a risky market portfolio instead of risk-free assets.

Risk-Free Rate

The hypothetical return on a risk-free investment, typically illustrated by the interest earned on government securities.

Beta

A measure of a stock's volatility in relation to the overall market; a beta above 1 indicates the stock is more volatile than the market.

Expected Return

The average of all possible returns from an investment, weighted by their probabilities.