If the interest rate on a ten-year bond issued by GM is 7.8% while the interest rate on a ten-year treasury bond is 4.6%, the risk premium is
A) 1.70%.
B) 3.2%.
C) -3.2%.
D) 12.4%.
Correct Answer:
Verified
Q2: An asset's fundamental value equals
A)its face value.
B)its
Q3: Rational expectations involve the assumption that
A)market participants
Q4: If the dollar is expected to depreciate
Q5: If market participants rely only past stock
Q6: The gap between the yield on a
Q7: When market participants use all available information
A)market
Q8: If traders in a market have rational
Q9: Which of the following statements is true
Q10: When market participants have rational expectations,
A)they use
Q11: Which of the following is NOT a
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