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

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Definitions:

Equipment

Long-term assets that are used in the production of goods and services; these are tangible in nature.

Accounts Receivable

Obligations of customers to pay a company for goods or services that have been dispensed but remain unpaid.

Journalize

The process of recording transactions in a company's journal, marking the first step in the accounting cycle.

Transactions

Economic events that involve transferring resources between entities, affecting financial statements.