Which One of the Following Statements Is Correct When Treasury

question 25

Multiple Choice

Which one 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:

Environmental Costs

Expenses incurred by companies to prevent, detect, and correct environmental damage they have caused.

Prime

In finance, often refers to the prime rate, which is the interest rate banks charge their most creditworthy customers. In manufacturing, can also mean prime costs, which are direct costs of production.

Environmental Management Accounting

The integration of environmental and financial decision-making processes to improve environmental and economic performance.

Traditional Management Accounting

An accounting approach focused on financial information, cost control, and budgeting techniques within an organization, traditionally emphasizing internal reporting.