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 known as the risk premium. This additional return is compensation for taking on the additional risk associated with the investment.

The Excess Return Required from a Risky Asset Over That