The Excess Return Is the Difference Between the Average Return

question 68

Multiple Choice

The excess return is 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/TSX Composite Index.
• D) Treasury Bills.

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Definitions:

Supply

The aggregate supply of a certain item or service made available for consumer purchase.

Price Elasticity

The measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating its sensitivity to price changes.

Midpoint Method

A technique used to calculate the price elasticity of demand or supply, avoiding the problem of using different base values for percentage calculations.

Supply

The total amount of a product or service available for purchase at any given price point.