The correct answer is: A. market realized return
Market realized return is the actual return that investors earn on their investments. It is calculated by taking the difference between the initial investment and the final value of the investment, and then dividing that difference by the initial investment.
Gross domestic product (GDP) is a measure of the total value of goods and services produced in a country in a given period of time. It is a good indicator of the strength of the economy, and as such, it can be used to predict future market returns.
The world economy strength is a measure of the overall health of the global economy. It is a good indicator of the demand for goods and services, and as such, it can be used to predict future market returns.
The level of inflation is a measure of the rate at which prices are rising in an economy. It is a good indicator of the cost of doing business, and as such, it can be used to predict future market returns.
Option B, portfolio realized return, is the actual return that investors earn on their portfolios. It is calculated by taking the difference between the initial value of the portfolio and the final value of the portfolio, and then dividing that difference by the initial value of the portfolio.
Option C, portfolio arbitrage risk, is the risk that an investor will lose money on a portfolio due to arbitrage opportunities. Arbitrage is the buying and selling of assets in different markets in order to profit from price differences.
Option D, arbitrage theory of return, is a theory that states that the expected return on an asset is equal to the risk-free rate of return plus a risk premium. The risk premium is the additional return that investors demand for taking on additional risk.