The Risk Premium Is Computed by ______ the Average Return

question 114

Multiple Choice

The risk premium is computed by ______ the average return for the investment.

• A) subtracting the inflation rate from
• B) adding the inflation rate to
• C) subtracting the average return on Treasury bills from
• D) adding the average return on Treasury bills to
• E) subtracting the average return on long-term bonds from

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Definitions:

Multiple Births

Multiple births occur when more than one baby is born from a single pregnancy, such as twins or triplets.

Germ Layer

One of the three primary layers of cells (endoderm, mesoderm, and ectoderm) in the early embryo that develop into all organs and tissues of the body.

Epidermis

The outermost layer of cells covering an organism, providing protection against the environment.

Ectoderm

The outermost layer of cells or tissue of an embryo in early development, giving rise to the formation of the nervous system and the skin epidermis.