Multiple Choice
The market portfolio of common stocks earned 20.4% last year. Treasury bills earned 5.3% on average last year. The average inflation rate was 2.5%. What was the equity risk premium?
A) 12.6%
B) 22.9%
C) 25.7%
D) 15.1%
E) 23.2%
Correct Answer:
Verified
Correct Answer:
Verified
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