The Annual Return on the S&P 500 Index Was 18

question 75

Multiple Choice

The annual return on the S&P 500 Index was 18.1 percent. The annual T-bill yield during the same period was 6.2 percent. What was the market risk premium during that year?

• A) 6.2 percent
• B) 11.9 percent
• C) 18.1 percent
• D) 24.3 percent

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Definitions:

Certificates

Official documents or records that verify the completion of education, training, or certification programs, or that authenticate facts.

Quartile

A statistical term describing any of the three points that divide a ranked data set into four equal parts, each representing one-fourth of the distributed sample.

Pay Range

The scope of compensation, from minimum to maximum, that an organization is willing to pay for a specific job or level of responsibility.

Superior Performance

A level of achievement that significantly surpasses the average or expected results.