The excess return required from a risky asset over that required from a risk-free asset is called the:
A)risk premium.
B)geometric premium.
C)excess return.
D)average return.
E)variance.

Question

Quizplus · Accepted Answer

The excess return required from a risky asset over that required from a risk-free asset is called the risk premium. It compensates investors for taking on additional risk. The other options are not correct definitions of this term.

The Excess Return Required from a Risky Asset Over That