The Rate of Return on Which One of the Following

question 60

Multiple Choice

The rate of return on which one of the following is used as the risk-free rate?

• A)Long-term government bonds
• B)Long-term corporate bonds
• C)Inflation, as measured by the Consumer Price Index
• D)U.S. Treasury bill
• E)Large-company stocks

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Definitions:

Commerce Clause

A provision in the United States Constitution that grants Congress the power to regulate trade between states, with foreign nations, and among Indian tribes.

Congress

The bicameral legislature of the United States, consisting of the House of Representatives and the Senate, responsible for making federal laws.

Constitutionality

The quality or condition of being in accordance with the constitution, often referring to laws or actions being tested for compliance with the constitutional framework.

Full Faith and Credit Clause

The Full Faith and Credit Clause is a provision in the United States Constitution that requires states to respect the "public acts, records, and judicial proceedings" of every other state.