The average amount by which the returns on stocks exceeds the return on debt securities is referred to as

Question

Quizplus · Accepted Answer

The difference between the returns on stocks and debt securities is known as the equity premium. Therefore, option D is the correct answer. Option A, beta coefficient, refers to the volatility of a stock compared to the overall market. Option B, gamma coefficient, is not a commonly used term in finance. Option C, return spread, can refer to any difference between two returns, not just stocks and debt securities.

The Average Amount by Which the Returns on Stocks Exceeds