For a Particular Investment the ___ Is the Return on a Risk

question 12

Multiple Choice

For a particular investment the ___ is the return on a risk free investment that makes the investor indifferent between the risky and risk free investment.

• A) risk premium
• B) adjusted volatility
• C) prime rate
• D) certainty equivalent return

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Definitions:

Bank Statement

A summary of financial transactions which have occurred over a given period on a bank account held by a person or business with a financial institution.

Deposits

Funds placed into a bank account or with some other entity for safekeeping, which can include money put in savings or checking accounts.

Electronic Funds Transfers

The electronic transfer of money between accounts by consumer electronic systems rather than the exchange of cash, checks, or other paper documents.

Internal Control Of Cash

Procedures and measures implemented by a business to monitor, manage, and protect its cash transactions and holdings.