Ask Question
BusinessBusiness
17 October, 05:30

Last year, T-bills returned 2 percent while your investment in large-company stocks earned an average of 5 percent. Which one of the following terms refers to the difference between these two rates of return?

A. risk premium

B. geometric return

C. arithmetic

D. standard deviation

E. variance

+5
Answers (1)
  1. 17 October, 05:39
    0
    A. risk premium

    Explanation:

    Based on the information provided within the question it can be said that the term being mentioned is risk premium. This term refers to the difference or excess of a the rate of return that a specific investment is expected to return, also seen as a type of compensation for investors who decide to take on the extra risk associated with this investment.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Last year, T-bills returned 2 percent while your investment in large-company stocks earned an average of 5 percent. Which one of the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Champaign Corporation purchases 45% of the common stock of Rockville, Inc. at a purchase price of $21.6 million cash. During the year, Rockville reports net income of $2,960,000 and pays $544,000 of cash dividends.
Answers (1)
Antonio Guillermo's wife was recently diagnosed with breast cancer. Guillermo had to take a considerable amount of time off work to care for their children, and he was late in completing his portion of a large project.
Answers (1)
List at least three examples of capital as a factor of production, and explain how it is different from land.
Answers (1)
Go to any kroger supermarket and walk to the cereal aisle. you will notice that four major brands-kellogg's, quaker, general mills, and post-seem to occupy most of the shelf space. these cereals are all priced about the same.
Answers (2)
In a manual accounting system, the document in which transactions are initially recorded chronologically is
Answers (1)
New Questions in Business
Bob's Lottery Inc. has decided to offer winners a choice of $195,000 in 10 years or some amount currently. Assume that Bob's Lottery Inc. earns a 7 percent after-tax rate of return.
Answers (1)
How does efficient frontier analysis (EFA) differ from other forms of complex risk assessment techniques? What limitations might an analyst encounter through the use of EFA?
Answers (1)
LO 2.2Which of the following would not be classified as manufacturing overhead? indirect materials indirect labor direct labor property taxes on factory
Answers (1)
Acme Enterprises began the year owing its suppliers $3,000 for merchandise purchased last year. Acme then sold half of this merchandise for $5,000 on account.
Answers (1)
Which of the following are considered to be personal financial statements? A. Budget and credit card statements B. Balance sheet and cash flow statement C. Checkbook and budget D. Tax returns
Answers (1)
Home » Business » Last year, T-bills returned 2 percent while your investment in large-company stocks earned an average of 5 percent. Which one of the following terms refers to the difference between these two rates of return? A. risk premium B. geometric return C.
Sign Up Forgot Password?