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:

Negative Effects

Detrimental or adverse outcomes resulting from an action, condition, or decision.

Organizational Performance

An assessment of a firm's effectiveness in reaching its goals, typically considering factors like profitability, efficiency, and market share.

Determinants

Factors or variables that causally influence outcomes or conditions in a predictable way.

Leaders

Individuals who guide, direct, or influence people, setting a direction for the group and motivating others towards achieving goals.