Which of the Following Statements Is Correct When Treasury Bills

question 24

Multiple Choice

Which 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:

Adenine Bases

One of the four nucleotide bases found in DNA and RNA, which pairs with thymine in DNA and with uracil in RNA.

Guanine

One of the four main nucleobases found in the nucleic acids DNA and RNA, characterized by its pairing with cytosine.

Cytosine

A nitrogenous base found in DNA and RNA, pairing with guanine.

DNA Replication

The process by which a cell duplicates its DNA before cell division, ensuring that each new cell receives a complete set of chromosomes.