The Market Portfolio of Common Stocks Earned 11

question 50

Multiple Choice

The market portfolio of common stocks earned 11.3% in one year.Treasury bills earned 3.1%.What was the real risk premium on equities?

• A)2.90%
• B)3.25%
• C)3.57%
• D)8.20%
• E)14.40%

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Definitions:

Liability

The state of being legally responsible for something, typically a debt or obligation.

Vicariously Liable

The condition of being held legally responsible for the actions or omissions of another person, often in the context of employment.

Ivic v. Lakovic

A legal case involving parties Ivic and Lakovic; specifics would depend on the jurisdiction and context of the case.

Strikes

Work stoppages initiated by employees as a form of protest against their employers to achieve certain goals, such as higher wages or better working conditions.