The Excess Return You Earn by Moving from a Relatively

question 30

Multiple Choice

The excess return you earn by moving from a relatively risk-free investment to a risky investment is called the:

• A) geometric average return.
• B) inflation premium.
• C) risk premium.
• D) time premium.
• E) arithmetic average return.

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Definitions:

Disaccharides

Carbohydrates composed of two monosaccharides bonded together, examples include sucrose and lactose.

Digestion

The biological process by which the body breaks down food into smaller components that can be absorbed into the bloodstream for use by the body.

Large Intestine

The final section of the digestive system, responsible for water absorption and formation of feces.

Chyme

The semifluid mass of partly digested food that moves from the stomach to the small intestine.