1. T/F: Over the last century, the S&P 500 has always outperformed Treasury Bills over periods of time exceeding 7 years, but Treasury Bills have beaten the S&P 500 in single years. Group of answer choices:

- True

- False

2. What does the market risk premium mean? Group of answer choices:

a. The risk-free rate

b. The relative performance of U.S. stocks vs. those of other countries

c. The expected return of the S&P 500 over the next year

d. The extra return an investor expects for accepting the risk of the S&P 500

e. The CAPM required return on an investment minus the risk-free rate