Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 22, 2024

What is the extra compensation paid to an investor who invests in a risky asset rather than in a risk-free asset called? realized return risk

What is the extra compensation paid to an investor who invests in a risky asset rather than in a risk-free asset called?

		realized return
		risk premium
		efficient return
		expected return
		correlated value

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

Recommended Textbook for

Fundamentals Of Futures And Options Markets

Authors: John Hull

9th Edition

0134083245, 9780134083247

More Books

Students also viewed these Finance questions

Question

★★★★★

Tony Matteo invested $9,800 in the CI Harbor growth and income fund. The fund charges 5.3 percent commission when shares are purchased. Calculate the amount of commission Tony must pay?

Answered: 1 week ago

Question

★★★★★

Sales + Number of shares = Earnings per share. True/False?

Answered: 1 week ago

Question

★★★★★

1. Discuss why it is important to understand health in terms of a continuum from illness to wellness. How might this conception of health help you to live a healthier, higher-quality life? Support...

Answered: 1 week ago

Question

★★★★★

Bond prices depend on the market rate of interest, stated rate of interest, and time. Requirements 1. Compute the price of the following 7% bonds of United Telecom. (a) $500,000 issued at 76.75. (b)...

Answered: 1 week ago

Question

★★★★★

You started a job at a start-up company right after graduation as the company's only accountant. The company started operations on July 1. Property taxes are one of the costs that the company incurs....

Answered: 1 week ago

Question

★★★★★

Required information [The following information applies to the questions displayed below.] The following selected information was extracted from the 20x1 accounting records of Lone Oak Products: Raw...

Answered: 1 week ago

Question

★★★★★

At the end of October, Margaretlamented the company's situation: in the middle of production of Sheffield-T's most popular long-sleeve T-shirt, the company ran out of its usual collars, purchased...

Answered: 1 week ago

Question

★★★★★

A student calculated an average value of 4289 for a Boyle's law constant k. Based on the number of significant figures in the measured quantities, how many significant figures should this result have...

Answered: 1 week ago

Question

★★★★★

What is the difference between a population parameter and a sample statistic?

Answered: 1 week ago

Question

★★★★★

a) Batu Kawi and FGB Berhad are operated in the same industry. The table below shows the monthly prices of these two corporations for seven months period (from December 2019 to June 2020). The...

Answered: 1 week ago

Question

★★★★★

What skills will you need in order to share what you have learned more widely?

Answered: 1 week ago

Question

★★★★★

Which individuals or groups may not wish to be identified through any dissemination process? What steps could you take to ensure that appropriate anonymity and confidentiality are maintained and that...

Answered: 1 week ago

Question

★★★★★

To what extent do you routinely use your critical judgement to assess the reliability and validity of evidence, including that based on your previous experience?

Answered: 1 week ago

Previous Question Next Question