Each of the Following Is a

question 6

Multiple Choice

Each of the following is a

• A)how will the product be handled?
• B)what kind of equipment is needed to handle or store the product?
• C)in what form will the product be?
• D)how much is the product worth?
• E)all of the above are questions

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Definitions:

Zero-Beta Security

A financial instrument whose returns are not correlated with those of the market, meaning it has a beta of zero, thus not contributing to portfolio volatility.

Expected Return

The probability-weighted average of the possible outcomes.

Risk Premium

The extra return above the risk-free rate that investors require as compensation for the risk of an investment.

Alpha

In investing, alpha is the measure of an investment's return relative to a benchmark index's performance, representing the value that a portfolio manager adds or subtracts from a fund's return.