Which One of the Following Earned the Highest Risk Premium

question 60

Multiple Choice

Which one of the following earned the highest risk premium over the period 1926-2010?

• A)long-term corporate bonds
• B)U.S. Treasury bills
• C)small-company stocks
• D)large-company stocks
• E)long-term government bonds

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Definitions:

Level Of Activity

A measurement of the amount of work or action in a specific area, often used in accounting or project management to quantify the extent of operations or tasks.

Cost Behavior

The way in which costs change in relation to changes in a business' levels of activity or production volume.

Related Activity

Activities or actions that are associated with or pertinent to a main activity or topic.

Relevant Range

The range of activity within which assumptions about variable and fixed cost behavior are valid.