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If William Earns a 10 Percent Return and Kate Earns

Question 1

Multiple Choice

If William earns a 10 percent return and Kate earns a 7 percent return on investments with the same risk, the additional 3 percent return on William's investment is a(n) _____. 


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

Correct Answer:

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