which is true about risky assets A. Risk preminum is difference between return o

Question

which is true about risky assets A. Risk preminum is difference between return on a risky asset5 and return on mkt portfilio B. Expected return on asset is = to sum of possible returns divided by their possible probabilities C) Risk premium is the expected return on a risky asset less the return on a risk free asset D) compairson of 2 different risky assets cannot be simplified by calculating the expected return for each E) expected returns depend on the states of the economy but not the associated probilities

Explanation / Answer

C) Risk premium is the expected return on a risky asset less the return on a risk free asset.

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