Historically, the Average Excess Return of the S&P 500 Over

question 36

Multiple Choice

Historically, the average excess return of the S&P 500 over the return of U.S. Treasury bonds has been ________ and is proxy for the market risk premium.

• A) between 10% and 12%
• B) between 14% and 16%
• C) between 5% and 7%
• D) between 11% and 13%

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Definitions:

Variable

A component, characteristic, or aspect that is subject to change or variation.

Bar Charts

Graphical representations of data using bars of different lengths or heights to compare values across categories.

Pie Charts

A type of graph in which a circle is divided into sectors that each represent a proportion of the whole.

Nominal Data

Data classified into categories that cannot be ordered or ranked, used for labeling variables without a quantitative value.