Over the 1957-2005 Period, the Risk Premium on Canadian Common

question 169

Multiple Choice

Over the 1957-2005 period, the risk premium on Canadian common stocks has averaged ______ per year.

• A) 0.0%
• B) 1.96%
• C) 2.36%
• D) 4.35%
• E) 10.97%

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Definitions:

Seasonal Heating

The variation in temperature and climate that occurs in a specific region during different times of the year due to the tilt of the Earth's axis.

Indian Monsoon

A seasonal reversing wind accompanied by corresponding changes in precipitation, crucial for the agriculture of the Indian subcontinent.

Arabian Sea

A region of the northern Indian Ocean bounded on the northwest by Pakistan and Iran, on the west by the Horn of Africa and the Arabian Peninsula, and on the east by India.

Bay of Bengal

A large body of water in the northeastern Indian Ocean bounded by Bangladesh to the north, Myanmar and the Andaman and Nicobar Islands to the east, and India to the west.