The Average Expected Rate of Return on Most Financial Assets

question 59

Multiple Choice

The average expected rate of return on most financial assets is the sum of the rates that compensate for:

• A) nondiversifiable risk and time preference.
• B) diversifiable risk and time preference.
• C) nondiversifiable and diversifiable risk.
• D) nondiversifiable and diversifiable risk,and time preference.

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Definitions:

Variables

Elements, characteristics, or factors that can change or vary in a research study, influencing the outcome or results.

Qualitative Data

Qualitative data consist of non-numerical information that describes characteristics, qualities, or categories of objects or subjects.

Bar Chart

A graphical representation of data using bars of varying heights to depict the values of different categories.

Collectively Exhaustive

A condition where all possible outcomes or cases are considered in a scenario or experiment.