Which of the Following Statements Is Correct When Treasury Bills

question 24

Multiple Choice

Which of the following statements is correct when Treasury bills yield 7.5% and the market risk premium is 9.5%?

• A) The S&P 500 would be expected to yield about 8.50%.
• B) The S&P 500 would be expected to yield about 9.50%.
• C) The S&P 500 would be expected to yield about 12.68%.
• D) The S&P 500 would be expected to yield about 17.00%.

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Definitions:

U-Boats

Submarines used primarily by Germany, especially during World War I and World War II, for naval blockade and warfare.

Military Purposes

describes the use or application of resources, strategies, or actions to achieve defense or warfare objectives.

United States Aid

The financial or material assistance provided by the United States government to other countries, aimed at promoting economic development, welfare, or political stability.

Winston Churchill

A British politician, army officer, and writer who served as Prime Minister of the United Kingdom during World War II and again in the early 1950s.