Multiple Choice
The market has an expected rate of return of 10.29 percent.The long-term government bond is expected to yield 4.73 percent,and the U.S.Treasury bill is expected to yield 3.21 percent.The inflation rate is 3.09 percent.What is the market risk premium?
A) 7) 20%
B) 9) 73%
C) 6) 78%
D) 8) 33%
E) 7) 08%
Correct Answer:
Verified
Correct Answer:
Verified
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