Multiple Choice
The market has an expected rate of return of 9.8 percent.The long-term government bond is expected to yield 4.5 percent and the U.S.Treasury bill is expected to yield 3.4 percent.The inflation rate is 3.1 percent.What is the market risk premium?
A) 2.2 percent
B) 3.3 percent
C) 5.3 percent
D) 6.4 percent
E) 6.7 percent
Correct Answer:
Verified
Correct Answer:
Verified
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