Which of the Following Is Generally Used as a Proxy

question 16

Multiple Choice

Which of the following is generally used as a proxy for the risk-free rate of return?

• A)Savings account
• B)Certificate of deposit
• C)Treasury security
• D)AAA-rated bond

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Definitions:

Differentiated Products

Products that are similar but distinguished from each other by features, branding, quality, or other attributes.

Tacit Collusion

An unspoken arrangement between firms in a market to set prices or production levels that benefit them at the expense of market competition.

Marginal Costs

The augmented cost incurred by the production of an extra unit of a product or service.

Tacit Collusion

A non-explicit agreement among competitors to limit competition and increase prices or profits without direct communication.