Which One of the Following Statements Concerning U

question 90

Multiple Choice

Which one of the following statements concerning U.S.Treasury bills is correct for the period 1926- 2010?

• A)The annual rate of return always exceeded the annual inflation rate.
• B)The average risk premium was 0.7 percent.
• C)The annual rate of return was always positive.
• D)The average excess return was 1.1 percent.
• E)The average real rate of return was zero.

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Definitions:

Sales Budget

An estimate of the expected sales revenue of a company for a particular period of time.

Cash Balance

The amount of cash held by an entity at any given time, visible on financial statements.