Which of the following is generally considered to represent the risk-free return?
A) Common stocks.
B) Treasury bills.
C) Small stocks.
D) Long bonds.
E) Inﬂation.

Question

Quizplus · Accepted Answer

Treasury bills are often considered to represent the risk-free return because they are backed by the full faith and credit of the government and have a low probability of default. Common stocks, small stocks, long bonds, and inflation all involve various levels of risk.

Which of the Following Is Generally Considered to Represent the Risk-Free