Multiple Choice
The market portfolio of common stocks earned 14.7% last year. Treasury bills earned 5.7% on average last year. The average inflation rate was 4.0%. What was the real risk premium on equities?
A) 5.0%.
B) 9.0%.
C) 6.5%.
D) 12.2%.
E) 18.7%.
Correct Answer:
Verified
Correct Answer:
Verified
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