What Is the Extra Compensation Paid to an Investor Who

question 2

Multiple Choice

What is the extra compensation paid to an investor who invests in a risky asset rather than in a risk-free asset called?

• A) efficient return
• B) correlated value
• C) risk premium
• D) expected return
• E) realized return

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Definitions:

Memory Errors

Mistakes or inaccuracies in the recall or recognition of information from memory, including forgetting, distortions, or fabrications.

Stimulants

Substances that increase activity in the central nervous system or the sympathetic nervous system, leading to increased alertness and physical activity.

Long-Term Memories

Memories that can be retained for extended periods, ranging from days to decades.

Depressant Drugs

Substances that reduce the activity of the central nervous system, leading to effects such as relaxation, reduced anxiety, and sleepiness.