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What Is the Amount of the Risk Premium on a U.S.Treasury

Question 54

Multiple Choice

What is the amount of the risk premium on a U.S.Treasury bill if the risk-free rate is 2.8 percent and the market rate of return is 8.35 percent?


A) 0.00 percent
B) 2.80 percent
C) 5.55 percent
D) 8.35 percent
E) 11.15 percent

Correct Answer:

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