Over the Past Ten Years,large-Company Stocks Have Returned an Average

question 51

Multiple Choice

Over the past ten years,large-company stocks have returned an average of 10.4 percent annually,long-term corporate bonds have earned 4.6 percent,and U.S.Treasury bills have returned 3.2 percent.How much additional risk premium would you have earned if you had invested in large-company stocks rather than long-term corporate bonds over those ten years?

• A)1.7 percent
• B)3.7 percent
• C)5.2 percent
• D)5.8 percent
• E)8.1 percent

---

Definitions:

Ex-smokers

Individuals who have quit smoking and no longer use tobacco products.

Weight Gain

The increase in body weight over time, which can result from a variety of factors including overeating, lack of exercise, or certain health conditions.

Quit Smoking

The act of quitting the use of tobacco smoke.

Lifestyle Change

Modifications made to a person's habits, attitudes, or living conditions, typically in order to improve health or well-being.