Common stocks and returns on long-term government bonds


Question 1: The difference between average annual returns on common stocks and returns on long-term government bonds is called a:

  • default risk premium
  • maturity premium
  • risk-free premium
  • liquidity premium
  • market risk premium

Question 2: Corporate bonds might involve which of the following types of "premiums."

  • inflation premium
  • default risk premium
  • liquidity premium
  • maturity premium
  • all of the above

Question 3: Intellectual property rights to "writings" in written and electronically-stored forms are protected by:

  • patents
  • copyrights
  • trade secrets
  • trademarks

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Business Law and Ethics: Common stocks and returns on long-term government bonds
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