For the Period 1926-2014, Which One of the Following Had

question 68

Multiple Choice

For the period 1926-2014, which one of the following had the smallest risk premium?

• A)Large-company stocks
• B)Small-company stocks
• C)Long-term corporate bonds
• D)U.S.Treasury bills
• E)Long-term government bonds

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Definitions:

Economic Profit

The remaining profit once every cost, including those that are explicit and those that are implicit, is deducted from the total revenue.

Market Price

The current price at which a good or service can be bought or sold in a marketplace, determined by the forces of supply and demand.

Units

Basic quantities or measurements, such as liters, meters, or kilograms, used to specify magnitudes of physical quantities.

Supply Curve

A graph showing the relationship between the price of a good and the amount of the good that suppliers are willing to sell, holding other factors constant.