The Additional Return Offered by a More Risky Investment Relative

question 24

Multiple Choice

The additional return offered by a more risky investment relative to a safer one is called

• A) the risk-free rate.
• B) the risky return.
• C) the risk premium.
• D) the insurance premium.

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Definitions:

Ad Hominem

A fallacy in argumentation where the focus is on attacking the character of the person making an argument rather than addressing the argument itself.

SWOT Model

Used to analyze a company’s strengths, weaknesses, external opportunities, and threats.

Internal Assessment

An evaluation conducted within an organization or individual to assess performance, strengths, and areas for improvement.

Strengths And Weaknesses

The positive attributes and areas for improvement that are inherent in individuals, organizations, or processes.