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

question 41

Multiple Choice

Over the past ten years, large-company stocks have returned an average of 11.6 percent annually, long-term corporate bonds have earned 6.4 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) 5.6 percent
• E) 8.1 percent

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Definitions:

Software Salesperson

A sales professional specializing in selling software products and solutions to customers.

Product Modifications

Changes or alterations made to a product's design, features, or specifications to improve its appeal, functionality or to cater to different market segments.

Dress in Armor

The act of wearing protective gear historically used in combat; metaphorically can refer to preparing oneself for challenging situations.

Rejection

The act of refusing or not accepting a proposal, offer, idea, etc., often encountered in sales situations.