Multiple Choice
In theory, the return you earn from government bonds (Treasury bills, or T-bills) which virtually have no default risk over a short time (one year or less) is called the:
A) geometric average return.
B) inflation premium.
C) risk premium.
D) risk-free return.
E) arithmetic average return.
Correct Answer:
Verified
Correct Answer:
Verified
Q6: The excess return required from a risky
Q13: You earned a total return of -5%
Q18: Estimates using the arithmetic average will probably
Q27: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7375/.jpg" alt=" A)3.2% B)3.4% C)3.6%
Q28: A year ago, you purchased 300 shares
Q29: If we assume that the standard deviation
Q34: Assuming no dividends were paid, what was
Q35: Little John Industries sold for £1.90 on
Q36: Capital market history shows us that the
Q78: The average compound return earned per year