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:

Improper Fraction

A fraction where the numerator is greater than or equal to the denominator, indicating a value greater than or equal to one.

Unit Value

A measurement or quantity used as a standard or fixed amount in calculations or transactions.