The Excess Return Required from a Risky Asset Over That

question 6

Multiple Choice

The excess return required from a risky asset over that required from a risk-free asset is called the:

• A)risk premium.
• B)geometric premium.
• C)excess return.
• D)average return.
• E)variance.

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Definitions:

Amniocentesis

A medical procedure involving the extraction of a small amount of amniotic fluid for testing, typically to diagnose genetic disorders in a fetus.

Karyotype

A complete picture of a person's chromosomes, arranged in order and used to look for chromosomal abnormalities.

Chorionic Villus Sampling

A prenatal test involving the extraction of a small sample of the placental tissue to test for chromosomal abnormalities.

Pedigree

In genetics, a pedigree is a diagram that shows the occurrence and appearance or phenotypes of a particular gene or organism and its ancestors from one generation to the next, often used to study the inheritance of specific traits.