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Which One of the Following Is the Best Definition of the Term

Question 1

Multiple Choice

Which one of the following is the best definition of the term 'expected return' as it applies to the concept of risk and return?


A) the guaranteed return on a short-term treasury security which will be earned in the future
B) the difference between the expected return on a risky asset and the expected rate of inflation
C) the certain return on a risk-free asset which is going to be earned in the future
D) the difference between the expected return on a risky asset and the certain return on a risk-free asset
E) the return on a risky asset which is expected in the future

Correct Answer:

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