The Risk Premium Is Likely to Be Highest for

question 65

Multiple Choice

The risk premium is likely to be highest for

• A) U.S. government bonds investment.
• B) corporate bonds investment.
• C) utility company stock investment.
• D) either corporate bonds or utility company stock investments.

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Definitions:

Disposable Income

The available sum for households to allocate on spending and saving post the deduction of income taxes.

Consumption

The use of goods and services by households, including both durable and non-durable goods.

Disposable Income

Fiscal resources for households' utilization in spending and saving post income tax processing.

Consumption

The employment of goods and services by domestic units.