If the Average Annual Rate of Return for Common Stocks

question 58

Multiple Choice

If the average annual rate of return for common stocks is 11.7%,and 4.0% for U.S.Treasury bills,what is the average market risk premium?

• A)15.7%
• B)4.0%
• C)7.7%
• D)not enough information provided

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Definitions:

Decision Maker

Decision Maker refers to an individual with the authority or power to make decisions that affect the outcome of a project, strategy, or enterprise.

Organizational Culture

The set of shared beliefs, values, norms, and practices that characterizes an institution or organization.

Effectiveness

Effectiveness is the degree to which an activity, process, or intervention achieves its intended goal or result, often used to evaluate performance and outcomes.

Social Culture

The patterns, behaviors, beliefs, and all other products of human work and thought as shared by a society.