The Excess Return Earned by an Asset That Has a Beta

question 89

Multiple Choice

The excess return earned by an asset that has a beta of 1.0 over that earned by a risk- free asset is referred to as the:

• A)market rate of return.
• B)systematic return.
• C)market risk premium.
• D)real rate of return.
• E)total return.

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Definitions:

Food Chains

A linear sequence of organisms through which nutrients and energy pass as one organism eats another.

Terrestrial Biomes

Large community of plants and animals that occupies a distinct region of land, identified by its climate, soil, and vegetation types.

Estuary

A coastal area where freshwater from rivers and streams meets and mixes with saltwater from the ocean, creating a unique and biodiverse ecosystem.

Floodplain Zone

An area adjacent to a river or stream that experiences occasional or periodic flooding, often fertile due to the silt deposits, but also susceptible to water damage.