The Excess Return If the Difference Between the Average Return

question 62

Multiple Choice

The excess return if the difference between the average return on a security and the average return for:

• A) Treasury Bonds.
• B) a portfolio of securities with similar risk.
• C) a broad based market portfolio like the S&P 500 index.
• D) Treasury Bills.

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Definitions:

Inelastic

Describes a condition where the demand or supply for a product or service is relatively unresponsive to changes in price.

Relatively Price Inelastic

A situation where the demand for a product changes by a smaller percentage than changes in price, indicating that consumers are less responsive to price changes.

Price Elasticity

A metric for evaluating how variations in the price of a commodity impact its demand level.

Unity

The state of being united or joined as a whole, often used in various contexts to denote harmony and agreement among members of a group or between entities.