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:

Fromm

Erich Fromm was a psychoanalyst and social psychologist known for his theories on the relationship between society and the individual, especially concerning freedom, love, and human nature.

Existential Needs

Fundamental human needs for purpose, meaning, autonomy, and connection, emphasizing the search for values and meaning in life.

Fromm

Erich Fromm was a psychoanalyst and social psychologist known for his theories on human personality, freedom, and the need for interpersonal connections.

Fromm

Refers to Erich Fromm, a psychoanalyst and social psychologist known for his theories on human nature, freedom, and society.