The average risk premium on long-term government bonds for


The average risk premium on long-term government bonds for the period 1926-2011 was equal to:

a) zero.

b) 1 percent.

c) the rate of return on the bonds plus the corporate bond rate.

d) the rate of return on the bonds minus the T-bill rate.

e) the rate of return on the bonds minus the inflation rate.

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Financial Management: The average risk premium on long-term government bonds for
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