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    Corporate Finance Study Set 2
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    Exam 10: Risk and Return Lessons From Market History
  5. Question
    The Market Portfolio of Common Stocks Earned 14
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The Market Portfolio of Common Stocks Earned 14

Question 4

Question 4

Multiple Choice

The market portfolio of common stocks earned 14.2% in one year.Treasury bills earned 5.5%.What was the real risk premium on equities?


A) 5.0%
B) 8.7%
C) 9.0%
D) 12.2%
E) 19.7%

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