Last Year,T-Bills Returned 2 Percent While Your Investment in Large-Company

question 51

Multiple Choice

Last year,T-bills returned 2 percent while your investment in large-company stocks earned an average of 5 percent.Which one of the following terms refers to the difference between these two rates of return?

• A)risk premium
• B)geometric return
• C)arithmetic
• D)standard deviation
• E)variance

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Definitions:

High Self-Esteem

A positive or favorable perception of oneself, marked by confidence and a sense of worth.

College-Educated

A term referring to individuals who have completed a college degree, encompassing both undergraduate and graduate levels of education.

Persuadability

The degree to which an individual is susceptible to being persuaded or changing their views due to external influences.

Low Self-Esteem

A condition or state where an individual holds a diminished or negative view of themselves, their abilities, or their value.