In the Equation R = R+ U, the Three Symbols

question 32

Multiple Choice

In the equation R = R+ U, the three symbols stand for:

• A) average return, expected return, and unexpected return.
• B) required return, expected return, and unbiased return.
• C) actual required return, expected return, and unexpected return.
• D) required return, expected return, and unbiased risk.
• E) risk, expected return, and unsystematic risk.

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Definitions:

Intuition

Intuition is the ability to understand something instinctively, without the need for conscious reasoning.

Behavioral Tendency

The inclination to act in certain ways based on learned behavior or inherent psychological mechanisms.

Prejudice

A preconceived opinion or judgment towards people, objects, or situations that is not based on actual experience or rational argument.

Discrimination

The unjust or prejudicial treatment of different categories of people, often based on race, age, sex, or disability.