In a Year in Which Common Stocks Offered an Average

question 63

Multiple Choice

In a year in which common stocks offered an average return of 18%, Treasury bonds offered 10%, and Treasury bills offered 7%. The risk premium for common stocks was:

• A) 1%.
• B) 3%.
• C) 8%.
• D)11%.

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Definitions:

Infects Trees

Refers to the action of pathogens, such as bacteria, viruses, fungi, or insects, attacking and causing diseases to trees.

Dikaryotic State

A phase in the life cycle of fungi characterized by two genetically distinct nuclei sharing the same cell.

Haploid

A cell or nucleus having a single set of unpaired chromosomes, typical of gametes in sexually reproducing organisms.

Different Parents

Refers to offspring produced through sexual reproduction, inheriting genetic material from two distinct parents.