Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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.
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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started