The Long Term Inflation Rate Average Was 3

question 21

Multiple Choice

The long term inflation rate average was 3.2% and you invested in long term corporate bonds over the same period which earned 6.1%. What was the average risk premium you earned?

• A) 2.9%
• B) 3.1%
• C) 9.3%
• D) 9.4%
• E) None of these.

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Definitions:

Negotiation

is the process by which two or more parties discuss and come to an agreement on a specific issue or set of issues.

Agreement

A mutual understanding or arrangement between two or more parties, typically formalized in a contract or verbal commitment.

Acceptable

Considered satisfactory or adequate; meeting the required standards.

Risk-taking

The willingness to engage in actions that can lead to significant gains or losses, embracing the potential for failure as a path to success.