In the equation R = E(R)+ U,the three symbols,from left to right,stand for:
A)average return,expected return,and unexpected return.
B)required return,expected return,and unbiased return.
C)actual return,expected return,and unexpected return.
D)required return,expected return,and unbiased risk.
E)required return,expected return,and unsystematic risk.

Question

Quizplus · Accepted Answer

- R represents actual return.
- E(R) represents expected return (which can be calculated based on various factors such as past performance and economic indicators).
- U represents unexpected return (which includes any unanticipated events that affect the actual return).

In the Equation R = E(R)+ U,the Three Symbols,from Left