The Market Risk Premium Is Defined as ________

question 40

Multiple Choice

The market risk premium is defined as ________.

• A)the difference between the return on an index fund and the return on Treasury notes
• B)the difference between the return on a small firm mutual fund and the return on the Standard and Poor's 500 index
• C)the difference between the return on the risky asset with the lowest returns and the return on Treasury notes
• D)the difference between the return on the highest yielding asset and the lowest yielding asset

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Definitions:

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