The Market Risk Premium Is Defined as __________

question 11

Multiple Choice

The market risk premium is defined as __________.

• A) the difference between the return on an index fund and the return on Treasury bills
• B) the difference between the return on a small firm mutual fund and the return on the Standard and Poor's 500 index
• C) the difference between the return on the risky asset with the lowest returns and the return on Treasury bills
• D) the difference between the return on the highest yielding asset and the lowest yielding asset