If the Future Return on a Security Is Known with Absolute

question 20

Multiple Choice

If the future return on a security is known with absolute certainty, then the risk premium on that security should be equal to:

• A)zero.
• B)the risk-free rate.
• C)the market rate.
• D)the market rate minus the risk-free rate.
• E)the risk-free rate plus one-half the market rate.

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Definitions:

Methods

Functions associated with objects in object-oriented programming, used to operate on the data contained within the object.

Complete Definitions

Providing comprehensive and detailed explanations or descriptions for given terms or concepts.

Late Binding

A programming mechanism where the method to be called is determined at runtime instead of compile time.

Private Methods

Methods that are accessible only within the class in which they are defined.