Last Year,T-Bills Returned 2 Percent While Your Investment in Large-Company

question 51

Multiple Choice

Last year,T-bills returned 2 percent while your investment in large-company stocks earned an average of 5 percent.Which one of the following terms refers to the difference between these two rates of return?

• A)risk premium
• B)geometric return
• C)arithmetic
• D)standard deviation
• E)variance

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Definitions:

Canada

A country located in the northern part of North America, known for its vast landscapes, multicultural communities, and bilingual status (English and French).

World Trade Organization

An international organization that regulates international trade, aiming to ensure trade flows as smoothly, predictably, and freely as possible.

Trade Negotiations

Talks and discussions between countries aimed at reaching agreements to expand trade, reduce trade barriers, and address related international trade issues.

Trade Wars

Economic conflicts between countries characterized by increasing tariffs or other trade barriers on each other's goods.