Multiple Choice
Assume inflation averaged 1.2 percent during a period in which U.S.Treasury bills earned 1.3 percent.What was the rate of return on large-company stocks if the risk premium on those stocks was 6.8 percent for the period?
A) 8) 1%
B) 8) 0%
C) 7) 9%
D) 9) 3%
E) 9) 2%
Correct Answer:

Verified
Correct Answer:
Verified
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