Which One of the Following Returns Is the Average Return

question 32

Multiple Choice

Which one of the following returns is the average return you expect to earn in the future on a risky asset?

• A) realized return
• B) expected return
• C) market return
• D) real return
• E) adjusted return

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Definitions:

Economic Entity Assumption

An accounting principle that treats a business as separate from its owners, allowing for independent financial statements.

Personal Living Expenses

Costs associated with daily living, including food, housing, transportation, and entertainment.

Cost

The amount of money required to purchase something or the expense incurred to produce something.

Office Building

A structure designed primarily for the occupation of offices and workspaces for various businesses and professionals.