The Average Annual Return on the S&P 500 Index from 1986

question 58

Multiple Choice

The average annual return on the S&P 500 Index from 1986 to 1995 was 17.6 percent. The average annual T-bill yield during the same period was 9.8 percent. What was the market risk premium during these 10 years?

• A) 8.2 percent
• B) 7.8 percent
• C) 8.8 percent
• D) 9.8 percent

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Definitions:

Organization

A structured group of people who come together to achieve common goals through a coordinated effort.

Manager

A manager is someone responsible for directing and controlling the work and staff of a business, or a part of a business, to achieve set objectives.

Management Functions

The core roles and activities undertaken by managers, including planning, organizing, leading, and controlling, to achieve organizational goals.

Mintzberg's Managerial Roles

A framework that categorizes a manager's job into ten roles divided into three categories: interpersonal, informational, and decisional.