In the Equation R = + U,the Three Symbols

question 24

Multiple Choice

In the equation 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 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:

Coupon

The percentage rate of interest a bond yields annually, based on its principal amount.

Current Yield

The annual return of an investment expressed as a percentage of its current price.

Rate of Return

The gain or loss on an investment over a specified period, proportionally expressed as a percentage of the investment's initial cost.

Capital Gains

The profit realized from the sale of assets or investments when the selling price exceeds the original purchase price.