Over the Long-Term,which One of the Following Is a Correct

question 18

Multiple Choice

Over the long-term,which one of the following is a correct statement concerning risk premium?

• A)The lower the volatility of returns,the greater the risk premium.
• B)Stocks tend to have a higher risk premium than bonds.
• C)The lower the rate of return,the greater the risk premium.
• D)The risk premium does not affect the rate of return.
• E)The risk premium varies by the same percentage rate as the inflation rate.

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Definitions:

Unlimited Capacity

Referring to a system or resource that has no bounds or limits in terms of storage, volume, or extent.

Sensory Memory

The shortest-term element of memory that allows us to retain impressions of sensory information after the original stimuli have ended.

Flashlight

A portable, battery-operated device used for illumination.

Dial

A control or mechanism on a device for adjusting settings or tuning.