Question
The market risk premium is most closely measured as a. the difference between the return on a small firm mutual fund and the return
The "market risk premium" is most closely measured as
a. | the difference between the return on a small firm mutual fund and the return on large index such as the Standard and Poor's 500 index | |
b. | the return on a large index fund (such as the S&P 500) | |
c. | the difference between the return on a large index fund (such as the S&P 500) and the return on Treasury bills | |
d. | the difference between the return on the risky asset with the lowest returns and the return on Treasury bills | |
e. | the difference between the return on the highest yielding asset and the lowest yielding asset |
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