Historically, the Average Excess Return of the Market Portfolio Over

question 52

Multiple Choice

Historically, the average excess return of the market portfolio over the return of Treasury bonds has been ________ and is proxy for the market risk premium.

• A)between 14% and 16%
• B)between 5% and 7%
• C)between 10% and 12%
• D)between 11% and 13%

---

Definitions:

Modus Ponens

A logical argument form where if a conditional statement ("if p then q") and its antecedent (p) are true, then the consequent (q) is also true.

Antecedent

In logic and grammar, the antecedent is the preceding clause, phrase, or word to which another word, particularly a pronoun, refers back.

Pure Hypothetical

A speculative statement or proposition that is considered in abstraction from any particular instance or factual situation.

Premise

An initial statement or proposition from which other statements are derived or reasoned out.