Which of the Following Is True of Risk Premium

question 170

Multiple Choice

Which of the following is true of risk premium?

• A) T-bills have a have a higher risk premium than that of Treasury bonds.
• B) The government bonds have a higher risk premium than that of corporate bonds.
• C) The speculative corporate issues have a lower risk premium than that of the higher rated corporate issues.
• D) The lower-rated corporate issues have a higher risk premium than that of the higher rated corporate issues.

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Definitions:

Income Inequality

Income inequality is the uneven distribution of income within a population, leading to disparities in wealth and living standards among different social and economic groups.

Social Network

A social network is a structure made up of individuals or organizations that are connected by one or more specific types of interdependency, such as friendship, kinship, common interest, financial exchange, or relationships of beliefs, knowledge, or prestige.

Work Rewards

The benefits and compensation received as a result of employment, including salary, bonuses, benefits, and intangible rewards like recognition and job satisfaction.

Income Inequality

A disparity in income distribution within a population, leading to a significant gap between the rich and the poor.