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:

Posterior Air SACs

Posterior air sacs are part of a bird's respiratory system, acting as reservoirs for fresh air, allowing for efficient gas exchange.

Fresh Air

Air that is outdoor, unpolluted, and considered healthy to breathe, characterized by its cleanliness and freshness.

Inhalation

The act of drawing air or other substances into the lungs.

Exhalation

The process of breathing out, expelling air rich in carbon dioxide from the lungs to the outside environment.