Multiple Choice
In a year in which common stocks offered an average return of 18 percent, Treasury bonds offered 10 percent and Treasury bills offered 7 percent, the risk premium for common stocks was:
A) 1 percent.
B) 3 percent.
C) 8 percent.
D) 11 percent.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q4: A market index is used to measure
Q5: The risk premium that is offered on
Q13: Most of the beneficial effects of diversification
Q21: When inflation is expected to be low,the
Q44: A stock that is considered to be
Q54: Which of the following security portfolios should
Q55: How is it possible for real rates
Q57: Determine the nominal rate of interest, if
Q72: Discuss the statement, "Only market risk matters
Q74: The variance of a stock's returns can