The Rate of Return on an Asset with No Uncertainty

question 85

Multiple Choice

The rate of return on an asset with no uncertainty regarding its return is known as the ___________. A typical example is the rate of return earned on a Treasury bill.

• A) Risk premium.
• B) Capital gains yield.
• C) Risk-free rate.
• D) Dividend yield.
• E) Compound return.

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Definitions:

Distribution of Wealth

The way in which the wealth of a country or community is divided among its citizens, often highlighting issues of economic equality or inequality.

Concentrated

Having a high density of a particular substance or element in a specific area or volume.

Equitably

In a fair and impartial manner, ensuring justice and equality in treatment, distribution of resources, or opportunities.

Upper-Class Elite

A segment of society that holds the highest social status, often due to wealth, ancestry, or political power.