The reward for bearing risk is known as the:
A) covariance.
B) risk premium.
C) beta.
D) realized return.
E) expected return.

Question

Quizplus · Accepted Answer

The reward for bearing risk is known as the risk premium, which compensates investors for taking on additional risk that may result in lower returns or even losses. Therefore, option B is the most appropriate answer. The other options, such as covariance, beta, realized return, and expected return, are related to risk measurement or return calculation methods, but do not specifically refer to the reward for bearing risk.

The Reward for Bearing Risk Is Known as The