Which One of the Following Had the Highest Risk Premium

question 74

Multiple Choice

Which one of the following had the highest risk premium for the period 1926-2009?

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

---

Definitions:

Entry Barriers

Obstacles that prevent or hinder new competitors from easily entering an industry or area of business.

Total Profit

The financial gain obtained by subtracting total expenses from total revenue generated from sales or operations.

MR

Marginal Revenue, the additional income that an organization earns by selling one more unit of a product or service.

MC

Marginal Cost; the additional cost incurred from producing one more unit of a good or service.