Since the Market Return Represents the Expected Return on an Average

question 42

True/False

Since the market return represents the expected return on an average stock,that return has a certain amount of risk.As a result,there exists a market risk premium,which is the amount over and above the risk-free rate,which is required to compensate stock investors for assuming an average amount of risk.

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Definitions:

Specific Allergies

Allergic reactions that are triggered by specific allergens, which can vary greatly among individuals.

Abnormal Cells

Cells exhibiting atypical structure or behavior, often indicative of disease processes such as cancer.

Noncancerous

A term used to describe tumors or growths that do not invade nearby tissues or spread to other parts of the body.

Malignant

A type of tumor or neoplasm that is invasive and destructive and that tends to metastasize; it is commonly known as cancerous.