The excess return earned by an asset that has a beta of one over that earned by a risk-free asset is referred to as the
A)market rate of return.
B)systematic return.
C)real rate of return.
D)market risk premium.
E)total return.

Question

Quizplus · Accepted Answer

The excess return earned by an asset that has a beta of one over that earned by a risk-free asset is referred to as the market risk premium. This is the return that investors demand for bearing the extra risk of investing in the overall stock market.

The Excess Return Earned by an Asset That Has a Beta