The market risk premium is defined as ___________.
A) the difference between the return on an index fund and the return on Treasury bills
B) the difference between the return on a small firm mutual fund and the return on the Standard and Poor's 500 index
C) the difference between the return on the risky asset with the lowest returns and the return on Treasury bills
D) the difference between the return on the highest yielding asset and the lowest yielding asset
Answer: A
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