Which One of the Following Returns Is the Average Return

question 32

Multiple Choice

Which one of the following returns is the average return you expect to earn in the future on a risky asset?

• A) realized return
• B) expected return
• C) market return
• D) real return
• E) adjusted return

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Definitions:

Velocity of Money

The rate at which money is exchanged from one transaction to another, and how much a unit of currency is used in a given period.

ATM Machines

Automated Teller Machines where individuals can perform financial transactions, such as cash withdrawals, deposits, and fund transfers, without the need for direct interaction with bank staff.

Credit Cards

Financial instruments that allow users to borrow funds up to a pre-set limit for purchases or cash advances, with the expectation of paying back the borrowed amount over time.

M1

A category of the money supply that includes all physical money like coins and currency, as well as demand deposits and other liquid assets that can quickly be converted to cash.