Which One of the Following Categories of Securities Had the Lowest

question 39

Multiple Choice

Which one of the following categories of securities had the lowest average risk premium for the period 1926-2010?

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

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Definitions:

Contribution Margin

The amount by which the sale of a product exceeds its variable costs, contributing towards covering fixed costs and generating profit.

Return On Investment (ROI)

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the benefit (return) of an investment by the cost of the investment.

Net Operating Income

The total profit of a business after operating expenses are deducted but before taxes and interest are calculated.

Combined Margin

A measure used in financial analysis that aggregates gross profit, operating margin, and net margin.