Which One of the Following Is the Best Definition of the Term

question 35

Multiple Choice

Which one of the following is the best definition of the term 'expected return' as it applies to the concept of risk and return?

• A)the guaranteed return on a short-term treasury security which will be earned in the future
• B)the difference between the expected return on a risky asset and the expected rate of inflation
• C)the certain return on a risk-free asset which is going to be earned in the future
• D)the difference between the expected return on a risky asset and the certain return on a risk-free asset
• E)the return on a risky asset which is expected in the future

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Definitions:

True Value

Represents the actual, inherent worth of an asset, free from market fluctuations or perceptions.

Gift Causa Mortis

A gift made by someone in contemplation of imminent death, which becomes void if the donor survives.

Lottery Proceeds

The revenue generated from the sale of lottery tickets, often allocated to public sector projects or education.

Fungible Good

Items that are interchangeable because they are of equal value or identical in important aspects.