The difference between returns on stocks and government bonds is known as
A) the equity risk premium.
B) the risk and return tradeoff.
C) the maturity premium.
D) the risk/reward paradox.

Question

Quizplus · Accepted Answer

The difference between returns on stocks and government bonds is known as the equity risk premium. It represents the additional return that investors demand for taking on the risk of investing in the stock market compared to investing in a government bond with lower risk.

The Difference Between Returns on Stocks and Government Bonds Is