If Treasury Bills Are Yielding 10% at a Time When

question 10

Multiple Choice

If Treasury bills are yielding 10% at a time when the market risk premium is 6%,then the:

• A) market portfolio should yield 4%.
• B) market portfolio should yield 6%.
• C) market portfolio should yield 16%.
• D) market portfolio should yield 22%.

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Definitions:

Discharged

Released from an obligation, duty, or debt; in employment, it can also mean being fired or let go from a job.

Modified

Altered or changed from the original form, structure, or condition.

Terminate

To bring to an end; in legal contexts, it often refers to ending a contract or employment.

Contract

An agreement between two or more parties that holds legal validity and can be enforced in a court of law.