What two elements are represented in security returns?
A)a premium for market risk and for unique risk
B)a premium for unique risk and a premium for firm-specific risk
C)a premium for diversification and a premium for portfolio risk
D)a premium for time value of money and a premium for market risk

Question

Quizplus · Accepted Answer

Security returns typically include a premium for the time value of money, representing the basic return investors expect for investing their money over time, and a premium for market risk, which compensates investors for the risk associated with the overall market's fluctuations.

What Two Elements Are Represented in Security Returns