The Difference Between Returns on Shares and Government Bonds Is

question 53

Multiple Choice

The difference between returns on shares and government bonds is known as [blank].

• A)the equity risk premium.
• B)the risk and return trade-off.
• C)the maturity premium.
• D)the risk/reward paradox.

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Definitions:

Nonlabor Income

Income received that does not come from working, such as interest from savings, dividends from investments, or government benefits.

Leisure

Free time spent away from work and compulsory activities, often devoted to relaxation, hobbies, and personal enjoyment.

Wage Rate

The amount of compensation an employee receives in exchange for performing a specific job, typically expressed per hour or year.

Endowment

The value that a property generates for its owner; in economics, it often refers to the initial allocation of goods and resources available to individuals.