If Treasury Bills Are Yielding 10% at a Time When

question 10

Multiple Choice

If Treasury bills are yielding 10% at a time when the market risk premium is 6%,then the:

• A) market portfolio should yield 4%.
• B) market portfolio should yield 6%.
• C) market portfolio should yield 16%.
• D) market portfolio should yield 22%.

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Definitions:

Aquifers

Underground layers of water-bearing permeable rock, rock fractures, or unconsolidated materials from which groundwater can be extracted using a water well.

Lakes

Large bodies of water surrounded by land, freshwater or sometimes saline, that are inland and not part of the ocean.

Rivers

Large natural streams of water flowing in channels to the sea, a lake, or another river.

Nonbiological Reservoirs

Natural or artificial environments that do not involve living organisms, which can store various substances or elements.