In the equation R = E(R) + U, the three symbols stand for:
A)average return, expected return, and unexpected return.
B)required return, expected return, and unbiased return.
C)actual total return, expected return, and unexpected return.
D)required return, expected return, and unbiased risk.
E)risk, expected return, and unsystematic risk.

Question

Quizplus · Accepted Answer

The equation R = E(R) + U represents the actual total return (R) as the sum of the expected return (E(R)) and the unexpected return (U).

In the Equation R = E(R) + U, the Three