Use the table for the question(s)below.
Consider the following average annual returns:
-What is the excess return for corporate bonds?
A)2.7%
B)1.3%
C)-5.7%
D)0%

Name: Use the table for the question(s)below. Consider the following average annual returns: -What is the excess return for corporate bonds? A)2.7% B)1.3% C)-5.7% D)0%
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Question

Use the table for the question(s)below.
Consider the following average annual returns: 
-What is the excess return for corporate bonds?
A)2.7% 
B)1.3% 
C)-5.7% 
D)0%

Quizplus · Accepted Answer

Excess return for corporate bonds is typically calculated as the return above a risk-free rate, and 2.7% is a plausible positive excess return for corporate bonds.

Use the Table for the Question(s)below