Chapter 5: Risk and Return Overview: Risk vs. Return A. risk the chance that unfavorable events will occur 1. s - PowerPoint PPT Presentation


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2. B. return = the benefit from an undertakingC. key intuition: 1. for rational investors, no investment will be undertaken unless the _______________ is enough to compensate investors for the ___________________they face.2. in equilibrium, no investment will have an expected return

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