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Assume a Stock Had an Historical Equity Risk Premium of 5.49

Question 15

Multiple Choice

Assume a stock had an historical equity risk premium of 5.49 percent and a standard deviation of 11.46 percent over the past two decades.What is the 95.4 percent range for the equity risk premium?


A) −.18 percent to 9.26 percent
B) −.57 percent to 15.09 percent
C) .41 percent to 20.03 percent
D) −.36 percent to 10.62 percent
E) 1.08 percent to 22.49 percent

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