Small Company Shares Are Yielding 15

question 49

Multiple Choice

Small company shares are yielding 15.7% while the Treasury bill has a 4.3% yield and a bank savings account is yielding 3.8%. What is the risk premium on small company shares?

• A) 15.7%.
• B) 11.9%.
• C) 7.6%.
• D) 11.4%.

---

Definitions:

Written Form

Refers to the requirement for certain agreements or documents to be in writing in order to be legally enforceable or valid.

Accepted

Accepted in legal and commercial contexts refers to the express or implied agreement to the terms of an offer, thereby creating a binding contract.

Instantaneous Forms

Documents or agreements that become effective immediately upon execution or fulfillment of certain conditions.

Mirror Image Rule

A principle in contract law that requires the acceptance of a contract offer to be identical to the offer for a legally binding agreement to be formed.