Ex ante returns are ? a. Those that investors expect to never receive b. Those that investors expect to receive today c. Those that investors expect to receive in the future d. Those that investors expect to receive in the past.

Ex ante returns are ? a. Those that investors expect to never receive b. Those that investors expect to receive today c. Those that investors expect to receive in the future d. Those that investors expect to receive in the past.

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter13: Investment Fundamentals

Section: Chapter Questions

Problem 7LTAI

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Concept explainers

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.

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