What Is the Risk Premium for the Following Returns If

question 58

Multiple Choice

What is the risk premium for the following returns if the risk-free rate is 5%?

• A) 0.085
• B) 0.100
• C) 0.125
• D) 0.135
• E) 0.175

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Definitions:

Quadra-

A prefix meaning four or fourfold, used to describe quantities or units.

Within

Inside or not further than a certain area, time period, or range.

Endo-

A prefix meaning "inside," "within," or "internal."

-cidal

A suffix indicating a substance or agent that kills or destroys a specified type of organism, such as bactericidal, which kills bacteria.