The Market Has an Expected Rate of Return of 9

question 103

Multiple Choice

The market has an expected rate of return of 9.8 percent.The long-term government bond is expected to yield 4.5 percent and the U.S.Treasury bill is expected to yield 3.4 percent.The inflation rate is 3.1 percent.What is the market risk premium?

• A)2.2 percent
• B)3.3 percent
• C)5.3 percent
• D)6.4 percent
• E)6.7 percent

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Definitions:

Discrete Stages

Distinct phases in development or processes that are clearly separated from one another, often with very different characteristics or functions.

Movement

The act or process of moving; in a broader context, it can refer to physical activities, migration, or social movements aiming for change.

Early Speech

The initial stages of acquiring and developing language skills, typically observed in toddlers as they begin to form words and simple sentences.

Object Permanence

The understanding that objects continue to exist even when they cannot be observed (seen, heard, touched, smelled, or sensed in any way).