When Treasury Bills Yield 7

question 73

Multiple Choice

When Treasury bills yield 7.0% and the expected return on the market is 16%,then the risk premium on an asset is equal to:

• A) 9.0%.
• B) 16.0%.
• C) 9.0% times the asset's beta.
• D) 8.0% plus the risk-free rate.

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Definitions:

Rate Of Change

A measure that calculates the percentage change in the value of a specific variable within a specific period.

Technological Conditions

The current state of technology within a particular area, industry, or society, including advancements, availability, and implementation.

General Environment

The broad external conditions that affect organizations and industries, including economic, technological, socio-cultural, and legal factors.

Scientific Advancements

Progress or breakthroughs in the field of science that lead to new knowledge, technologies, or applications.