Which of the Following Is TRUE of the Risk Premium

question 196

Multiple Choice

Which of the following is TRUE of the risk premium?

• A)T-bills have a have a higher risk premium compared with Treasury bonds.
• B)Government bonds have a higher risk premium compared with corporate bonds.
• C)Junk bonds have a lower risk premium investment-grade bonds.
• D)The lower-rated corporate issues have a higher risk premium than that of the higher rated corporate issues.

---

Definitions:

Instinct

A natural, usually unchangeable behavior pattern in animals triggered by specific stimuli.

Mitosis

A process of cell division that results in two genetically identical daughter cells from a single parent cell.

Meiosis

A form of cell division that reduces the number of chromosomes by half, creating four haploid cells, each genetically distinct from the parent and from each other.

Reproduction

The natural method through which offspring are generated from their progenitors.