7. Which one of the following is defined as the average compounded return earned per year over a multiyear period?

A. Variance of returns

B. Arithmetic average return

C. Standard deviation of returns

D. Geometric average return

8. Investors require a 4 percent return on risk-free investments. On a particular risky investment, investors require an excess return of 7 percent in addition to the risk-free rate of 4 percent. What is this excess return called?

	A.	Risk premium
	B.	Required return
	C.	Average return
	D.	Real return

PLEASE ANSWER ALL QUESTIONS