Multiple Choice
The average annual return on the S&P 500 Index from 1986 to 1995 was 17.6 percent. The average annual T-bill yield during the same period was 9.8 percent. What was the market risk premium during these 10 years?
A) 8.2 percent
B) 7.8 percent
C) 8.8 percent
D) 9.8 percent
Correct Answer:
Verified
Correct Answer:
Verified
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