The Market Has an Expected Rate of Return of 10

question 112

Multiple Choice

The market has an expected rate of return of 10.8%.The long-term government bond is expected to yield 4.5% and the U.S.Treasury bill is expected to yield 3.4%.The inflation rate is 3.1%.What is the market risk premium?

• A)2.2%
• B)3.3%
• C)5.3%
• D)6.4%
• E)7.4%

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Definitions:

Judicial Activism

A judicial philosophy advocating for decisions that go beyond the text of the law, often to effect social change or broader societal benefits.

Civil Rights Movement

A decades-long struggle, particularly during the 1950s and 1960s, aiming to end legalized racial discrimination and segregation in the United States.

Legal Approaches

Various methods and perspectives used in the practice and analysis of law, including how laws are interpreted, applied, and enforced in different contexts.

Extralegal Approaches

Methods or actions taken outside of established legal frameworks.