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The Market Rewards Assuming Additional Unsystematic Risk with Additional Returns

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The market rewards assuming additional unsystematic risk with additional returns.


Definitions:

Anticipated Benefits

Anticipated benefits are the expected positive outcomes or gains that result from particular actions or investments.

Useful Life

The expected period over which an asset is anticipated to be used by an organization, or the number of production or similar units expected to be obtained from the asset.

Production Capacity

The maximum output a business can produce in a given period under normal conditions.

Accumulated Depreciation

The total amount of depreciation expense that has been charged against a fixed asset since it was put into use.

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