The Excess Return Earned by an Asset That Has a Beta

question 60

Multiple Choice

The excess return earned by an asset that has a beta of 1.34 over that earned by a risk-free asset is referred to as the:

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

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Definitions:

Embryo

The early developmental stage of an organism, following fertilization and preceding fetal development.

Amnion

A thin, protective membrane that forms a sac around the embryo or fetus during pregnancy, containing the amniotic fluid.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to the growing baby while removing waste products from the baby's blood.

Amniotic Fluid

The protective liquid contained within the amniotic sac of a pregnant female, surrounding and cushioning the fetus during development.