Multiple Choice
Which one of the following is a correct statement concerning risk premium?
A) The greater the volatility of returns, the greater the risk premium.
B) The lower the volatility of returns, the greater the risk premium.
C) The lower the average rate of return, the greater the risk premium.
D) The risk premium is not correlated to the average rate of return.
E) The risk premium is not affected by the volatility of returns.
Correct Answer:
Verified
Correct Answer:
Verified
Q39: The total annual returns on large company
Q40: The risk premium is computed by _
Q41: A year ago,you purchased 300 shares of
Q42: In predicting the expected future return of
Q43: Excelsior share are currently selling for $25
Q45: A stock had returns of 6%,13%,-11%,and 17%
Q46: Suppose you have $30,000 invested in the
Q47: The average annual return on small company
Q48: Based on the period of 1926 through
Q49: A stock had returns of 11%,1%,9%,15%,and -6%