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In Business / College | 2025-07-08

Which of the following is a measure of the spread between the return of an asset and the risk-free rate?
A. Risk premium
B. Standard deviation
C. Beta
D. Volatility

Asked by 1toxicgaming143

Answer (2)

The risk premium is the measure of the spread between the return of an asset and the risk-free rate, representing the extra return investors expect for taking on additional risk. While standard deviation, beta, and volatility are related concepts for assessing risk, they serve different purposes in financial analysis. ;

Answered by GinnyAnswer | 2025-07-08

The answer to the question is A. Risk premium, which measures the additional return anticipated from an asset compared to a risk-free investment. This concept helps investors assess the value of taking on risk. Other terms like standard deviation, beta, and volatility are related but serve different roles in risk assessment.
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Answered by Anonymous | 2025-07-10

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