The Long Term Inflation Rate Average Was 3

question 61

Multiple Choice

The long term inflation rate average was 3.1% and you invested in long term corporate bonds over the same period which earned 6.2%.What was the average risk premium you earned?

• A)2.9%
• B)3.1%
• C)9.3%
• D)9.4%
• E)None of the above.

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Definitions:

Central Location

A statistical term that refers to the center or typical value in a set of data, often measured by mean, median, or mode.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values; how spread out numbers are around the mean.

Median

The middle value of a data set, which divides the set into two equal halves when arranged in ascending or descending order.

Pth Percentile

A value on a rank-ordered dataset below which a certain percentage (P) of observations fall.