Which One of the Following Is Expressed as "E(R_M)- R_f

question 2

Multiple Choice

Which one of the following is expressed as "E(R_M) - R_f"?

• A) market risk premium
• B) individual security risk premium
• C) real rate of return
• D) total expected rate of return
• E) market rate of return

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Definitions:

Anti-federalists

A group in early American history that opposed the creation of a stronger U.S. federal government and which later opposed the ratification of the 1787 Constitution, fearing centralization of power.

Federalists

Supporters of the ratification of the U.S. Constitution, advocating for a strong federal government.

City-states

Independent, sovereign cities which operate like small countries, having their own governments and economies.

American Democracy

A system of government where power is vested in the people, who rule either directly or through freely elected representatives.