The Risk Premium Is Computed by ______ the Average Return

question 40

Multiple Choice

The risk premium is computed by ______ the average return for the investment.

• A) subtracting the inflation rate from
• B) adding the inflation rate to
• C) subtracting the average return on the U.S. Treasury bill from
• D) adding the average return on the U.S. Treasury bill to
• E) subtracting the average return on long-term government bonds from

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Definitions:

Skateboards

A narrow plank of wood mounted on wheels, used for recreational activity and transportation, typically steered by a rider's balance.

Consolidation

Consolidation refers to the process of combining several smaller entities, debts, or accounts into a single, more comprehensive unit for management efficiency.

Restructuring

The act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable or better organized.

Asset Purchase

An asset purchase involves buying the assets of a company, such as equipment, inventory, and property, rather than buying the company's stock.