The Excess Return You Earn by Moving from a Relatively

question 30

Multiple Choice

The excess return you earn by moving from a relatively risk-free investment to a risky investment is called the:

• A) geometric average return.
• B) inflation premium.
• C) risk premium.
• D) time premium.
• E) arithmetic average return.

---

Definitions:

Humanistic

An approach in psychology that emphasizes empathy and stresses the good in human behavior.

Trait

A characteristic pattern of behavior or a disposition to feel and act, as assessed by self-report inventories and peer reports.

Brain Arousal

Refers to the state of being alert and mentally and physically active, regulated by various brain structures and neurotransmitter systems.

Introvert

An individual who prefers solitary activities and is more inwardly focused on their thoughts and feelings.