The Market Has an Expected Rate of Return of 10

question 30

Multiple Choice

The market has an expected rate of return of 10.2%. The long-term government bond is expected to yield 4.2% and the U.S. Treasury bill is expected to yield 3.8%. The inflation rate is 3.1%. What is the market risk premium?

• A) 2.9%
• B) 3.3%
• C) 6.0%
• D) 6.4%
• E) 6.9%

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Definitions:

Technical Skills

Abilities and knowledge needed to perform specific tasks, often related to computational and physical tasks or to operate machinery.

Active Listening

A communication technique that involves paying full attention, understanding, responding, and remembering what is being said.

Nonverbal Cues

Forms of communication without the use of spoken language, such as gestures, body language, facial expressions, and eye contact.

Eye Contact

The act of looking directly into another person's eyes, often used as a means of communication, to convey confidence or establish connection.