The Amount of Risk Premium Allocated to Security a Is

question 59

Multiple Choice

The amount of risk premium allocated to Security A is dependent upon which one of the following?

• A)unsystematic risk associated only with Security A
• B)total risk associated with Security A's classification
• C)total surprise associated with Security A
• D)the difference between the expected return and the actual return on Security A
• E)systematic risk associated with Security A

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Definitions:

RFP

Stands for Request for Proposals, a document issued by an organization to invite suppliers to bid on providing products or services.

Organizations

Entities composed of multiple people working together towards a common goal, often structured with specific roles and a hierarchy.

Proposals

Documents offering a plan or suggestion, put forward for consideration or discussion by others.

Description

The act of providing detailed information about characteristics, features, or aspects of something.