Small Company Stocks Are Yielding 15

question 81

Multiple Choice

Small company stocks are yielding 15.7% while the U.S. Treasury bill has a 4.3% yield and a bank savings account is yielding 3.8%. What is the risk premium on small company stocks?

• A) 7.6%
• B) 11.4%
• C) 11.9%
• D) 15.7%

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Definitions:

Genes

Segments of DNA located on chromosomes, that contain the instructions for the synthesis of proteins, influencing individual traits.

Hormones

Chemical messengers secreted by glands that regulate bodily processes and behaviors by acting on specific target cells.

Homeostasis

The balanced internal environment of the body; the automatic tendency of an organism to maintain such a steady state.

Internal Environment

The conditions and processes within an organism that contribute to its functioning.