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:

Endothelium

The thin layer of cells that lines the interior surface of blood vessels and lymphatic vessels.

Basement Membrane

The basement membrane is a thin, fibrous layer that lies between the epithelium and the underlying connective tissue, providing support and anchorage.

Tunic Media

The middle layer of the wall of blood vessels, composed mostly of smooth muscle and elastic tissue, which regulates the diameter of the vessels.

Arteries

Blood vessels that carry oxygenated blood away from the heart to the body's tissues, except for the pulmonary arteries, which carry deoxygenated blood to the lungs.