The Excess Return Is the Difference Between the Average Return

question 38

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 500 index
• D) Treasury bills

---

Definitions:

Ions

Atoms or molecules with a net electrical charge due to the loss or gain of one or more electrons.

Gases

Substances that can expand freely to fill any space available, irrespective of its quantity.

Subatomic Particles

Particles smaller than atoms, including protons, neutrons, and electrons, which make up the atom's structure.

Electrons

Negatively charged particles present in every atom that function as the main conduits for electrical current in solid materials.