The Excess Return Earned by an Asset That Has a Beta

question 59

Multiple Choice

The excess return earned by an asset that has a beta of 1.0 over that earned by a risk-free asset is referred to as the:

• A)market rate of return.
• B)market risk premium.
• C)systematic return.
• D)total return.
• E)real rate of return.

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Definitions:

Competitive Disadvantage

A condition or circumstance that puts a company in an unfavorable position relative to competitors.

Workforce

The collective body of individuals employed by a particular organization or working in a particular sector.

Mismatch

A discrepancy or lack of alignment between two or more elements, such as skills and job requirements or expectations and reality.

Pay Gap

The disparity in the amount of remuneration between different groups, notably seen in the difference between wages paid to men and women or employees of different ethnicities.