The Annual Return on the S&P 500 Index Was 12

question 1

Multiple Choice

The annual return on the S&P 500 Index was 12.4 percent. The annual T-bill yield during the same period was 5.7 percent. What was the market risk premium during that year?

• A) 5.7 percent
• B) 6.7 percent
• C) 12.4 percent
• D) 18.1 percent

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Definitions:

Federal Trade Commission Act

A U.S. federal law established in 1914 to promote consumer protection and eliminate and prevent anticompetitive business practices.

Material Misrepresentation

An untrue assertion of fact by one individual to another that leads to the latter being persuaded into a agreement.

Affirmative Disclosure

The requirement for parties, especially in commercial transactions, to proactively share relevant information, rather than merely avoiding falsehoods.

FTC

The Federal Trade Commission, a United States government agency established to protect consumers and ensure a strong competitive market by enforcing antitrust and consumer protection laws.