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Match the following statements with the appropriate term a. Market Risk Premium (MRP) The financial asset used to proxy for the risk-free rate() The asset

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Match the following statements with the appropriate term a. Market Risk Premium (MRP) The financial asset used to proxy for the risk-free rate() The asset that is used to proxy for the return on the market portfolio b. Maturity premium the average stock in the market) The additional return over the risk-free rate needed to compensate investors for bearing an aderage amount of risk d. Treasury Bills The extra return expected in a long term versus a short term risk free e. Risk premium asset 61 The extra return in excess of the risk free rate as compensation for bearing risk Abroad-based stock market index such as the SLP 500 or Dow Jones Industrial 1 Astock with this Beta value has an average amount of market systematic risk A stock with this Beta valuo his less than the average amount of market systematic risk Astock with this Beta value has more than the average amount of market (systematic) tisk

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