The unexpected return of an asset is the:
A) expected return minus the risk-free rate.
B) realized return minus the expected return.
C) risk-free rate minus the realized return.
D) expected return minus the risk premium.
E) expected return minus the realized rate.

Question

Quizplus · Accepted Answer

The unexpected return of an asset is the actual return (realized return) minus the expected return. It represents the deviation of the actual return from the predicted or estimated return. Therefore, choice B is the correct answer.

The Unexpected Return of an Asset Is The