The Long Term Inflation Rate Average Was 3

question 10

Multiple Choice

The long term inflation rate average was 3.2% and you invested in long term corporate bonds over the same period which earned 6.1%.What was the average risk premium you earned?

• A)2.9%
• B)3.1%
• C)9.3%
• D)9.4%
• E)None of the above

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Definitions:

Parasympathetic

The part of the autonomic nervous system responsible for relaxation and conservation of energy.

Sympathetic

Part of the autonomic nervous system that prepares the body for action in challenging or threatening situations.

Parasympathetic

Part of the autonomic nervous system responsible for the body's rest and digest response, counteracting the fight or flight system.

Aroused

A state of heightened physiological and psychological activity, including alertness and emotional engagement.