The Market Risk-Premium Is Equal to the Expected Return on the Market

question 46

True/False

The market risk-premium is equal to the expected return on the market less the risk-free rate of return.

---

Definitions:

Frequency

The number of times an event occurs within a given data set.

Skewed

Skewed refers to a distribution that is asymmetrical, where data points are more concentrated on one side of the scale, leading to a long tail on the opposite side.

Modality

Pertains to the way or method by which something is encountered, manifested, or articulated.

Multimodal

Pertaining to or utilizing more than one mode or method of transportation, communication, or expression.