Multiple Choice
The market has an expected rate of return of 11.4%. The long-term government bond is expected to yield 5.4% and the U.S. Treasury bill is expected to yield 4.6%. The inflation rate is 3.9%. What is the
Market risk premium?
A) 6.0%
B) 6.8%
C) 7.5%
D) 8.5%
E) 9.3%
Correct Answer:
Verified
Correct Answer:
Verified
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