The Risk Premium Is the Difference Between the Average Return

question 25

Multiple Choice

The risk premium is the difference between the average return on a security and the average return for:

• A)long-term Government of Canada bonds.
• B)a portfolio of securities with similar risk.
• C)a broad-based market portfolio like the S&P 500 index.
• D)Treasury bills.
• E)corporate bonds.

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Definitions:

Dura Mater

The outermost, tough layer of the three meninges that cover the brain and spinal cord, providing protection.

Meninx

The enveloping membrane of the brain and spinal cord; includes dura mater, arachnoid, and pia mater.

Periosteum

Thick, double-layered connective tissue sheath covering the entire surface of a bone, except the articular surface, which is covered with cartilage.

Femoral Nerve

A major nerve in the leg that supplies sensation to the front of the thigh and part of the lower leg as well as motor control to muscles of the leg and hip.