The Average Annual Return on the S&P 500 Index from 1986

question 98

Multiple Choice

The average annual return on the S&P 500 Index from 1986 to 1995 was 17.6 percent. The average annual T-bill yield during the same period was 9.8 percent. What was the market risk premium during these ten years?

• A) 8.2%
• B) 7.8%
• C) 8.8%
• D) 9.8%

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Definitions:

Fit to Remain

Suitable or adequate to continue in status, position, or condition, implying no need for significant alteration or replacement.

Rear Caliper Piston

A specific type of caliper piston located at the rear brakes, playing a vital role in the vehicle's stopping power by applying pressure to the brake pads.

Front Caliper Piston

A component of disc brake systems, located in the brake caliper, that pushes against the brake pads to create friction with the brake rotors and slow the vehicle.

Rotor Thickness

A measurement of the width of the rotor, a key component in a disc brake system, which is crucial for effective braking and safety.