__ Returns Are the Returns Earned on a Financial Asset

question 28

Multiple Choice

__ returns are the returns earned on a financial asset in excess of that required to compensate for the risk of the asset.

• A) Abnormal
• B) Excess
• C) Surplus
• D) Economic

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Definitions:

Demand Forecast

The process of estimating the future demand for a product or service, based on historical data, current market trends, and predictive analysis.

Correlated

The relationship between two or more variables where a change in one variable is associated with a change in another.

Exponential Smoothing

A statistical technique used in time series analysis to smooth data points and forecast future values, giving more weight to recent observations.

α

In inventory management and forecasting, α represents the smoothing constant used in exponential smoothing models, crucial for adjusting response rate to demand changes.