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

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

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


a. default risk premium

b. maturity premium

c. risk-free premium

d. liquidity premium

e. market risk premium


Answer: market risk premium


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