Use the table for the question(s)below.
Consider the following average annual returns:

-What is the risk premium for Treasury bills?
A)0%
B)-8.4%
C)-2.7%
D)-1.4%
E)-18.4%

Question

Use the table for the question(s)below.
Consider the following average annual returns:
 
-What is the risk premium for Treasury bills?
A)0% 
B)-8.4% 
C)-2.7% 
D)-1.4% 
E)-18.4%

Quizplus · Accepted Answer

The risk premium for Treasury bills is considered to be 0% because they are seen as risk-free investments, being backed by the full faith and credit of the U.S. government.

Use the Table for the Question(s)below