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:

Trade Agreement

A contract between nations that outlines how they will work together to ensure mutual benefits in trade.

Common Law

A system of law based on precedent and customs rather than statutory laws.

Modern Court Decisions

Recent judgments or rulings made by courts that interpret and apply the law.

Parental Consent

Legal permission granted by a parent or guardian allowing a minor to partake in specific activities or to receive certain treatments.