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:

Consumers

Individuals or entities that purchase goods and services for personal use.

Widgets

A generic term for any hypothetical manufactured good used in economics or consumer studies.

Consumers

Individuals or entities that purchase goods or services for personal use and not for manufacturing or resale.

Widgets

A hypothetical or generic product often used in economic examples and problems to represent any type of good or service.