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Last Year,T-Bills Returned 2 Percent While Your Investment in Large-Company

Question 51

Multiple Choice

Last year,T-bills returned 2 percent while your investment in large-company stocks earned an average of 5 percent.Which one of the following terms refers to the difference between these two rates of return?


A) risk premium
B) geometric return
C) arithmetic
D) standard deviation
E) variance

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