The rate of return earned on a U.S. Treasury bill is frequently used as a proxy for the:
A)risk premium.
B)deflated rate of return.
C)risk-free rate.
D)expected rate of return.
E)market rate of return.

Question

Quizplus · Accepted Answer

The rate of return earned on a U.S. Treasury bill is typically considered as the risk-free rate, which is the minimum return an investor expects for a risk-free investment. It is frequently used as a proxy for the risk-free rate in financial models and analyses.

The Rate of Return Earned on a U