Which One of the Following Is the Most Apt to Have

question 78

Multiple Choice

Which one of the following is the most apt to have the largest risk premium in the future based on the historical record for 1926-2014?

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

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Definitions:

Shareholders

Individuals or entities that own shares in a corporation, thereby having ownership interest and potentially influence over the company.

Surplus Revenue

Excess income over expenditures generated by an organization, government, or company.

Government's Permission

Authorization from a governmental authority for an individual or entity to perform certain actions or operations.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders; it has rights and liabilities independent of them and can enter into contracts, sue, and be sued.