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.

Question

Quizplus · Accepted Answer

The difference between returns on shares (equity) and government bonds (fixed income) is known as the equity risk premium. It represents the additional return that investors require to invest in equities instead of safer fixed income investments.

The Difference Between Returns on Shares and Government Bonds Is