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    Principles of Corporate Finance
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    Exam 7: Introduction to Risk and Return
  5. Question
    If the Average Annual Rate of Return for Common Stocks
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If the Average Annual Rate of Return for Common Stocks

Question 58

Question 58

Multiple Choice

If the average annual rate of return for common stocks is 11.7%,and 4.0% for U.S.Treasury bills,what is the average market risk premium?


A) 15.7%
B) 4.0%
C) 7.7%
D) not enough information provided

Correct Answer:

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