Which One of the Following Is a Correct Statement Concerning

question 54

Multiple Choice

Which one of the following is a correct statement concerning the excess return?

• A)The greater the volatility of returns,the greater the expected excess return.
• B)The lower the volatility of returns,the greater the expected excess return.
• C)The lower the average rate of return,the greater the excess return.
• D)The excess return is not correlated to the average rate of return.
• E)The excess return is not affected by the volatility of returns.

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Definitions:

Brand Names

The distinctive names given to products or services by businesses to identify and differentiate them from competitors.

Elastic Demand

A situation where the quantity demanded of a good or service significantly changes in response to a change in its price.

Generic Products

Products that are not branded and are sold without any proprietary name or trademark.

"Staying" Power

refers to the endurance or capacity of an entity, such as a company or product, to remain relevant or competitive over a long period.