What Is the Amount of the Risk Premium on a U.S.Treasury

question 54

Multiple Choice

What is the amount of the risk premium on a U.S.Treasury bill if the risk-free rate is 2.8 percent and the market rate of return is 8.35 percent?

• A)0.00 percent
• B)2.80 percent
• C)5.55 percent
• D)8.35 percent
• E)11.15 percent

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