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William and Kate Invest in Two Different Securities Carrying the Same

Question 40

Multiple Choice

William and Kate invest in two different securities carrying the same amount of risk. However, William earned a 10 percent return and Kate earned a 7 percent return on their investments. The additional return on William's investment is considered a(n) _____.


A) risk adjusted return
B) justified return
C) abnormal return
D) efficient return
E) premium return

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