Question: The difference between the market rate and the risk - free rate is the Blank _ _ _ _ _ _ . Multiple choice question.

The difference between the market rate and the risk-free rate is the Blank______.
Multiple choice question.
market risk premium
risk-free return
market risk return
premium on risk-free rate

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

*5 The Vancouver International Airport Authority manages and operates the Vancouver International Airport (YVR). Its focus on safety, security, and customer service has contributed to YVRs ranking...

Q:

If a bond's stated rate is 6 % and the market rate is 4 % , this bond will sell at Blank _ _ _ _ _ _ . Multiple choice question. face value a premium a discount

Q:

Question 2 (10 points) Which of the following statements is FALSE? Common dividends are a liability that must be paid each quarter. Common stockholders have the right to vote for the board of...

Q:

B D WxC 33 34 Cost of Preferred Equity 35 Preferred Dividend 0.000 36 Preferred Equity 0.000 37 Cost of Preferred Equity 0.000 38 39 WACC 40 Weight Cost 41 Equity 90.000% 9.099% 42 Debt Cost (A-T)...

Q:

The multidimensional SML predicts that the contribution of each source of risk to a security s total risk premium equals the factor Blank _ _ _ _ _ _ times the Blank _ _ _ _ _ _ of the factor...

Q:

The multidimensional SML predicts that the contribution of each source of risk to a security's total risk premium equals the factor Blank______ times the Blank______ of the factor portfolio tracking...

Q:

The portion of a nominal interest rate or bond yield that represents compensation for the possibility of default is called the Blank______. Multiple choice question. interest rate risk premium real...

Q:

If an asset has a reward-to-risk ratio of 6.0%, that means it has a Blank______ of 6.0% per unit of Blank______. Multiple choice question. return; risk systematic risk; risk premium risk premium;...

Q:

According to the liquidity preference theory the difference between the expected short - term interest rate and the forward rate is the Blank _ _ _ _ _ _ . Multiple choice question. liquidity...

Q:

The first lesson from studying capital market history is that risky assets, on average, earn a Blank _ _ _ _ _ _ . Multiple choice question. return of 5 percent risk premium risk - free rate of...

Q:

The rate of return the investor demands for giving up the current use of funds on a noninflation - adjusted basis is called Blank _ _ _ _ _ _ ? Multiple choice question. stated rate of return...

Q:

Exeter Corp. reports warranty expense by estimating the amount that eventually will be paid to satisfy warranties on its product sales. For tax purposes, the expense is deducted when paid. During its...

Q:

Penguin Corporation paid $16,200 for a 90% interest in Seagull Corporation on January 1, 2019, when Seagull stockholders' equity consisted of $10,000 Capital Stock and $3,000 of Retained Earnings....

Q:

mint cleaning incoroprated Show all images Show all images Show all images done loading

Q:

WHAT IS the cash flow statement BBINFIT ,AND HOW WE CAN ANALAYSES

Q:

5. For each of the following situations involving marginal cost (MC) and marginal benefit (MB), indicate whether it would be best to produce more, fewer, or the current number of units. LO1.4 a....

Q:

2. Indicate whether each of the following statements applies to microeconomics or macroeconomics: LO1.3 a. The unemployment rate in the United States was 5.1 percent in September 2015. b. A U.S....

Q:

3. Suppose that you initially have $100 to spend on books or movie tickets. The books start off costing $25 each and the movie tickets start off costing $10 each. For each of the following...