Which One of the Following Is Expressed as "E(R_M)- R_f

question 2

Multiple Choice

Which one of the following is expressed as "E(R_M) - R_f"?

• A) market risk premium
• B) individual security risk premium
• C) real rate of return
• D) total expected rate of return
• E) market rate of return

---

Definitions:

Questioning Attitude

The habit of consistently asking questions to gain deeper understanding, encourage critical thinking, and challenge assumptions.

Open Mind

The willingness to consider new ideas, perspectives, and experiences without prejudice.

New Ideas System

A framework or process for generating, capturing, and evaluating innovative concepts within an organization or group.

Benchmarking

The practice of comparing a company's processes and performance metrics to industry bests or best practices from other companies.