The expected return on a security includes a reward for:
A) market risk and specific risk.
B) specific risk.
C) diversification and portfolio risk.
D) time value of money and market risk.

Question

Quizplus · Accepted Answer

The expected return on a security includes a reward for the time value of money and market risk, as these are the factors that investors are compensated for when investing in securities.

The Expected Return on a Security Includes a Reward For