Which One of the Following Earned the Highest Risk Premium

question 60

Multiple Choice

Which one of the following earned the highest risk premium over the period 1926-2010?

• A)long-term corporate bonds
• B)U.S. Treasury bills
• C)small-company stocks
• D)large-company stocks
• E)long-term government bonds

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Definitions:

National Parks

Areas of natural beauty, historical significance or ecological importance, protected by the government for public enjoyment and preservation.

Public Good

An item or service offered to every member of a community for free, supplied either by public authorities or by a private entity or group without seeking financial gain.

Common Resource

A resource like air or water that is not owned by anyone, cannot be traded in a market, and is available for everyone to use, often leading to overuse and depletion.

Profit Motive

The driving force behind business operations and activities, where the primary goal is to earn and maximize profits.