What is the excess return for corporate bonds?

Consider the following average annual returns:

Investment Average Return
Small Stocks 23.8%
S&P 500 13.1%
Corporate Bonds 7.5%
Treasure Bonds 6.8%
Treasury Bills 4.9%

A) 2.6%
B) 1.3%
C) 5.2%
D) 0%


Answer: A

Business

You might also like to view...

Assume that the market segment is judged to be large enough, and the strong competitors are either absent or deemed to be vulnerable, then is it safe to enter the country?

What will be an ideal response?

Business

In selecting an advertising agency, all of the following issues should be taken into consideration except:

A) company organization. B) national responsiveness. C) area coverage. D) buyer perception. E) franchise or company owned status.

Business

Marginal cost is the change in total cost caused by a one-unit change in output

Indicate whether the statement is true or false

Business

Inse Corporation uses time and material pricing. The repair department expects 20,000 direct labor hours of activity and has the following selected data:   Labor and fringe benefit costs$800,000 Overhead Costs (excludes material handling and storage) 480,000 Target profit 220,000 The company's time charge per hour is:

A. $64. B. $11. C. $24. D. $75. E. $40.

Business