Market Risk Premium,also Known as the Risk Premium of Market

question 71

True/False

Market risk premium,also known as the risk premium of market portfolio,is defined as the difference between market return and return on risk-free Treasury bills.

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Definitions:

Market Conditions

The various factors that influence the supply and demand of goods and services, including prices, competition, and overall economic climate.

Elastic Demand

A situation where the quantity demanded of a product or service changes significantly when its price changes.

Close Substitutes

Products or services that can easily replace each other in the eyes of consumers due to their similar features or functions.

Trade Barriers

are government-imposed restrictions on the exchange of goods and services across borders, including tariffs, quotas, and regulations.