Short-Term U

question 167

Multiple Choice

Short-term U.S.government securities are practically risk-free, and thus their rates of return are payments solely for

• A)diversifiable risk.
• B)time preference.
• C)idiosyncratic risk.
• D)pure profit.

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Definitions:

Fractions

A mathematical expression representing a part of a whole, usually in the form of a numerator and a denominator.

Higher Terms

A fraction in which both the numerator and denominator have been multiplied by the same number.

Denominator

In a fraction, the number below the line.

Fraction

A mathematical expression representing the division of one quantity by another, indicating parts of a whole.