Question

The excess return is the difference between the average return on a security and the average

return for ________.
A) Treasury bonds
B) a portfolio of securities with similar risk
C) a broad-based market portfolio like the S&P 500 index
D) Treasury bills

Answer 1

(d) Treasury bills

Step-by-step explanation:

Treasury bills :

Treasury Bills is also called T-bills. It is the momentary currency advertise instrument, given by the national bank in the interest of the administration to control brief liquidity shortages.

These do not yield any interest, but issued at a discount, at its redemption price, and repaid at par when it gets matured.