In a Year in Which Common Stocks Offered an Average

question 101

Multiple Choice

In a year in which common stocks offered an average return of 18% and Treasury bills offered 7%.The risk premium for common stocks was:

• A) 1%.
• B) 3%.
• C) 18%.
• D) 11%.

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Definitions:

Act-of-State Doctrine

A principle in international law that holds that a nation is sovereign within its own borders and its domestic actions cannot be questioned by the courts of another nation.

Foreign Sovereign Nation

A foreign sovereign nation refers to a country that operates under its own autonomous government and is recognized as having complete authority over its territory and political affairs, separate from other nations.

Commercial Activities

Business operations or actions that are directly related to the exchange of goods, services, or anything of value between businesses or entities.

Foreign State

A country or nation other than the one where a legal judgment or action is being considered or taken.