Question: The excess return earned by an asset that has a beta of 1.0 over that earned by a risk-free asset is referred to as the:

The excess return earned by an asset that has a beta of 1.0 over that earned by a risk-free asset is referred to as the: Select one: a. market rate of return. b. real rate of return. c. systematic return. d. total return. e. market risk premium.

Step by Step Solution

3.24 Rating (156 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

e market risk premium as per CAPM required return risk free rate beta ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!