In theory, the return you earn from government bonds (Treasury bills, or T-bills) which virtually have no default risk over a short time (one year or less) is called the:
A)geometric average return.
B)inﬂation premium.
C)risk premium.
D)risk-free return.
E)arithmetic average return.

Question

Quizplus · Accepted Answer

The return earned from government bonds with no default risk over a short time is considered the risk-free return. Therefore, the correct choice is D. The other options are not applicable in this scenario.

In Theory, the Return You Earn from Government Bonds (Treasury