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Commerce · Q754

Financial Management

Graduate and Post Graduate · Commerce · question 754

Q754

An expected rate of return is denoted by

A.
e-bar
B.
r-bar
C.
r-hat
Answer
D.
e-hat

Answer: Option C

Solution

Answer: Option C
Solution:
An expected rate of return is denoted by r-hat. In securities trading, the letter R has a special meaning when added to the end of a ticker symbol. The letter R has a different meaning when applied as part of financial formula where it usually means some form of return.