The Amount of Risk Premium Allocated to Security a Is

question 59

Multiple Choice

The amount of risk premium allocated to Security A is dependent upon which one of the following?

• A)unsystematic risk associated only with Security A
• B)total risk associated with Security A's classification
• C)total surprise associated with Security A
• D)the difference between the expected return and the actual return on Security A
• E)systematic risk associated with Security A

---

Definitions:

Public Service

Services provided by the government to its citizens, either directly through public sector agencies or by financing provision of services.

Romans

An ancient civilization originating from the city of Rome, known for its significant contributions to law, politics, culture, and architecture, or refers to the citizens of Rome.

Stoic Philosophy

An ancient Greek school of thought emphasizing the development of self-control, fortitude, and rationality in the face of adversity.

Stoic

Pertaining to the philosophy of Stoicism, which teaches the development of self-control and fortitude as a means of overcoming destructive emotions.